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Satisficing with a variable threshold

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  • Kovach, Matthew
  • Ülkü, Levent
Abstract
We axiomatize a model of satisficing which features random thresholds and the possibility of choice abstention. Given a menu, the decision maker first randomly draws a threshold. Next, using a list order, she searches the menu for alternatives which are at least as good as the threshold. She chooses the first such alternative she finds, and if no such alternative exists, she abstains. Since the threshold is random, so is the resulting behavior. We characterize this model using two simple axioms. In general the revelation of the model’s primitives is incomplete. We characterize a specialization of the model for which the underlying preference and list ordering are uniquely identified by choice frequencies. We also show that our model is a special Random Utility Model.

Suggested Citation

  • Kovach, Matthew & Ülkü, Levent, 2020. "Satisficing with a variable threshold," Journal of Mathematical Economics, Elsevier, vol. 87(C), pages 67-76.
    • Handle: RePEc:eee:mateco:v:87:y:2020:i:c:p:67-76
    DOI: 10.1016/j.jmateco.2019.12.005
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    Cited by:

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    2. Victor H. Aguiar & Maria Jose Boccardi & Nail Kashaev & Jeongbin Kim, 2023. "Random utility and limited consideration," Quantitative Economics, Econometric Society, vol. 14(1), pages 71-116, January.
    3. Bhavook Bhardwaj & Siddharth Chatterjee, 2022. "Decisions over Sequences," Papers 2203.00070, arXiv.org, revised Sep 2022.
    4. Aguiar, Victor H. & Kimya, Mert, 2019. "Adaptive stochastic search," Journal of Mathematical Economics, Elsevier, vol. 81(C), pages 74-83.
    5. Kovach, Matthew & Suleymanov, Elchin, 2023. "Reference dependence and random attention," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 421-441.
    6. Wang, Kai, 2022. "Approval with frames," Journal of Mathematical Economics, Elsevier, vol. 103(C).
    7. Rehbeck, John, 2024. "A menu dependent Luce model with a numeraire," Journal of Mathematical Economics, Elsevier, vol. 110(C).
    8. Yegane, Ece, 2022. "Stochastic choice with limited memory," Journal of Economic Theory, Elsevier, vol. 205(C).
    9. Kashaev, Nail & Aguiar, Victor H., 2022. "A random attention and utility model," Journal of Economic Theory, Elsevier, vol. 204(C).
    10. Manzini, Paola & Mariotti, Marco & Ülkü, Levent, 2024. "A model of approval with an application to list design," Journal of Economic Theory, Elsevier, vol. 217(C).
    11. Ishii, Yuhta & Kovach, Matthew & Ülkü, Levent, 2021. "A model of stochastic choice from lists," Journal of Mathematical Economics, Elsevier, vol. 96(C).

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