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On Optimal Satisficing: How Simple Policies Can Achieve Excellent Results

  • J. Neil Bearden
  • Terry Connolly
Part of the Springer Optimization and Its Applications book series (SOIA, volume 21)

Herbert Simon introduced the notion of satisficing to explain how boundedly rational agents might approach difficult sequential decision problems. His satisficing decision makers were offered as an alternative to optimizers, who need impressive computational capacities in order to maximize their payoffs. In this chapter, we present a simplified sequential search problem for a satisficing decision maker, and show how to compute its optimal satisficing search policies. Our analyses provide bounds on the performance of satisficing search policies.

Keywords

Decision Maker Optimal Policy Search Cost Decision Alternative Aspiration Level 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • J. Neil Bearden
    • 1
  • Terry Connolly
    • 1
  1. 1.Department of Management and OrganizationsUniversity of ArizonaTucsonUSA

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