Satisficing in sales competition : experimental evidence

Berninghaus, Siegrfried K. ; Güth, Werner ; Levati, M. Vittoria ; Qiu, Jianying

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URL:	https://ub-madoc.bib.uni-mannheim.de/2564
URN:	urn:nbn:de:bsz:180-madoc-25649
Document Type:	Working paper
Year of publication:	2007
The title of a journal, publication series:	Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung
Volume:	07-03
Place of publication:	Mannheim
Publication language:	English
Institution:	School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series:	Sonderforschungsbereich 504 > Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung (Laufzeit 1997 - 2008)
Subject:	330 Economics
Classification:	JEL: C92 C72 D43 ,
Subject headings (SWD):	Duopol , Absatz , Eingeschränkte Rationalität , Nichtkooperatives Spiel
Keywords (English):	Satisficing behavior , Bounded rationality , Duopoly , Theory absorption
Abstract:	In a duopoly market, aspirations express how much sellers want to earn given their expectations about the other's behavior. We define individually and mutually satisficing sales behavior for given individual beliefs and aspirations. In a first experimental phase, whenever satisficing is not possible, beliefs, aspirations, or sales have to be adapted. In a second phase, testing the absorption of satisficing, participants are free to select nonsatisficing sales profiles. The results reveal that most people are satisficers who, either mandatorily or deliberately, tend to adjust aspiration levels if they cannot be satisfied.