chapter  3
Aspiration formation and satisficing in search with(out) competition
ByWerner Güth, Torsten Weiland
Pages 24

In line with Simon (1956, 1957), we suggest a bounded rationality approach according to which one first tests several candidates (sampling) before forming aspirations for some measurable aspects of performance (e.g., Schank & Abelson, 1977; Holland, Holyoak, Nisbett, & Thagard, 1986). Since much of the literature on bounded rationality is primarily advancing theory (e.g., Sauermann & Selten, 1962; Selten, 1998), so far only few experimental studies directly elicit aspiration levels, for example, by asking for aspirations in bargaining (e.g., Tietz, Weber, Vidmajer, & Wentzel, 1978; Tietz, 1992) and how they are adjusted in the light of feedback information (March & Shapiro, 1987, 1992). Similarly, Fellner, Gu¨th, and Maciejovsky (2009) and Gu¨th, Levati, and Ploner (2009) analyze individual risky choices.