We experimentally explore individual and interactive decision making ina sequential search task and test whether generally accepted principles ofbounded rationality (aspiration formation, satisficing, and aspiration adjustment)adequately explain the observed search behavior. Subjects can, at...

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,...

The paper explores the applicability of the satisficing approach. Inparticular, we investigate whether basic principles of aspiration formationand satisficing behavior are transferable between similar situations.Individuals are sequentially confronted with two risky investmenttasks, a simple and...

If a strict equilibrium is suggested as the solution of a strategicgame in normal form and if some but not all players are committedto their solution strategy, a reduced game results with only thestill non-committed as active players. The reduced game property (orconsistency axiom) demands that...

In this paper we attempt to assess empirically the capability set ofthe disabled. We formulate the assumptions under which capability canbe interpreted as needs-adjusted disposable household income, and useequivalence scales methodology to estimate it for households in the UK.We identify a...

We describe Amartya Sen’s Capability Approach to welfare evaluationin the language of standard welfare economics, and assess to what extentit provides a genuine alternative for individual welfare measurement andpolicy evaluation. We review the nascent empirical literature on the...