Satisficing or Optimizing?An Experimental Study

This experimental study investigates whether individuals preferbounded rationality over rational choice theory when facing simpleinvestment tasks. First, participants state some personal parametersthat serve as an input to render a theoretical approach, namelysatisficing or optimality, applicable. Then, they are guided throughthe decision making process where either ‘satisficing’ or ‘optimality’is suggested and has to be implemented. The behavioral appeal ofthe two approaches is measured by the adjustments of personal parametersuntil accepting the investment decision suggested by theory.Additionally, a questionnaire is administered to elicit subjective contentmentwith the two approaches.