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Full-Text Articles in Social and Behavioral Sciences
A Note On The Synthesis Of The Satisficing Concept And The Neoclassical Theory, Sergey V. Malakhov
A Note On The Synthesis Of The Satisficing Concept And The Neoclassical Theory, Sergey V. Malakhov
Sergey Malakhov
The development of the neoclassical theory of search bridges the gap between the assumption of the maximizing consumer behavior and the satisficing decision procedure. The paper argues that the consumer satisficing decision procedure results in the equality of the marginal costs of search with its marginal benefit.
Money Flexibility And Optimal Consumption-Leisure Choice Under Price Dispersion, Sergey V. Malakhov
Money Flexibility And Optimal Consumption-Leisure Choice Under Price Dispersion, Sergey V. Malakhov
Sergey Malakhov
The synthesis of G.Sigler’s rule of the optimal search with the classical individual labor supply model can incorporate the satisficing decision procedure in the neoclassical framework. Many psychological anomalies and puzzles like the paradox of little pre-purchase search for big-ticket items and the effect of sunk costs sensitivity get the purely economic rationale. This synthesis also enlarges the understanding of the phenomenon of money flexibility under price dispersion. The specific constraints of the search model establish the correspondence between elasticity of the marginal utility of labor income with regard to price dispersion, wage rates, and the propensity to search. The …