Journal article
Quasi-rational search under incomplete information: some evidence from experiments
The Manchester School, Vol.65(2), pp.127-144
1997
Abstract
This paper presents an aspiration-satisficing model of consumer search under limited information where no optimal strategy is defined. The model is contrasted with the Hey (Journal of Economic Behaviour and Organization (1982), Vol. 3, No. 1, pp. 65–81; (1987), Vol. 8, No. 2, pp. 137–144) ``bounce rules''. Experimental evidence is presented which, in this environment, lends support for the former explanation over the latter. In particular, the order in which price quotes were received was not accorded significance. These contrasting results suggest that subjects may utilize rules of varying degrees of sophistication depending on the costs and expected benefits attached to their use in different informational environments. A simpler version of the aspiration-satisficing model is then developed that produces an ``order effect''.
Details
- Title
- Quasi-rational search under incomplete information: some evidence from experiments
- Authors/Creators
- D.J. Butler (Author/Creator) - The University of Western AustraliaG.C. Loomes (Author/Creator) - University of York
- Publication Details
- The Manchester School, Vol.65(2), pp.127-144
- Publisher
- Blackwell
- Identifiers
- 991005544818307891
- Copyright
- Blackwell Publishers Ltd and The Victoria University of Manchester
- Murdoch Affiliation
- Murdoch University
- Language
- English
- Resource Type
- Journal article
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