Satisficing in sales competition: experimental evidence

In a stochastic duopoly market, sellers must form state-specific aspirationsexpressing how much they want to earn given their expectationsabout the other's behavior. We define individually and mutually satisficingsales behavior for given individual beliefs and aspiration profiles. In afirst experimental phase, whenever satisficing is not possible, beliefs or aspirationshave to be adapted, or other strategy profies must be found. Ina second phase, participants are free to select non-satisficing sales profiles.The results reveal that most people are satisficers who, either mandatorilyor deliberately, tend to adjust aspiration levels if they cannot be satisfied.

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Year of publication:	2006-12-01
Authors:	Berninghaus, Siegfried ; Güth, Werner ; Levati, M. Vittoria ; Qiu, Jianying
Institutions:	Max-Planck-Institut für Ökonomik <Jena> / Abteilung Strategische Interaktion
Subject:	Eingeschränkte Rationalität \| Erwartungsbildung \| Experimentelle Wirtschaftsforschung \| experiment \| Verkaufstechnik \| Dyopol

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Extent:	237568 bytes 31 p. application/pdf
Series:	Max-Planck-Institut für Ökonomik - Papers on Strategic Interaction Discussion Paper ; 0632 (2006)
Type of publication:	Book / Working Paper
Language:	English
Classification:	C72 - Noncooperative Games ; C92 - Laboratory; Group Behavior ; D43 - Oligopoly and Other Forms of Market Imperfection ; Forecast, decision making ; Sales and distribution ; Simulation methods ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005866647