Good Enough

28 Pages Posted: 24 Sep 2018

See all articles by Salvador Barberà

Salvador Barberà

Universitat Autònoma de Barcelona

Geoffroy de Clippel

Brown University - Department of Economics

Alejandro Neme

Instituto Nacional de Matemática Pura e Aplicada (IMPA)

Kareen Rozen

Brown University - Department of Economics

Date Written: July 1, 2018

Abstract

A decision maker may not perfectly maximize her preference over the feasible set. She may feel it is good enough to maximize her preference over a sufficiently large consideration set; or just require that her choice is sufficiently well-ranked (e.g., in the top quintile of options); or even endogenously determine a threshold for what is good enough, based on an initial sampling of the options. We introduce and investigate a class of theories, Order-k Rationality, encompassing heuristics such as these.

Suggested Citation

Barberà Sàndez, Salvador and de Clippel, Geoffrey and Neme, Alejandro and Rozen, Kareen, Good Enough (July 1, 2018). Available at SSRN: https://ssrn.com/abstract=3244623 or http://dx.doi.org/10.2139/ssrn.3244623

Salvador Barberà Sàndez (Contact Author)

Universitat Autònoma de Barcelona ( email )

Edifici B - Campus Bellaterra
Barcelona, 08193
Spain

Geoffrey De Clippel

Brown University - Department of Economics ( email )

64 Waterman Street
Providence, RI 02912
United States

Alejandro Neme

Instituto Nacional de Matemática Pura e Aplicada (IMPA) ( email )

Estrada Dona Castorina 110
5700 San Luis, 22460
Argentina

Kareen Rozen

Brown University - Department of Economics ( email )

64 Waterman Street
Providence, RI 02912
United States

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