The Satisficer's Curse

  title={The Satisficer's Curse},
  author={R. Marks},
  journal={ERN: Other Microeconomics: Decision-Making under Risk \& Uncertainty (Topic)},
  • R. Marks
  • Published 2013
  • Economics
  • ERN: Other Microeconomics: Decision-Making under Risk & Uncertainty (Topic)
Following the Winner’s Curse and the Optimizer’s Curse, this paper introduces the Satisficer’s Curse. The Winner’s Curse requires competition between agents in an auction for, usually, a common-value item; the Optimizer’s Curse is a systematic overvaluation when the decision maker is choosing the highest-valued prospect of a set of uncertain future outcomes. The Satisficer’s Curse is a systematic overvaluation that occurs when any uncertain prospect is chosen because its estimate exceeds a… Expand
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