Ordinal Relative Satisficing Behavior: Theory and Experiments


We propose a notion of rrationality, a relative version of satiscing behavior based on the idea that, for any set of available alternatives, individuals choose one of their rbest according to a single preference. We fully characterize the choice functions satisfying the condition for any r, and provide an algorithm to compute the maximal degree of rrationality associated with any given choice function. The notion is extended to individuals whose r may vary with the set of available alternatives. We provide experimental evidence that the predictive power of our theory, measured by Seltens index, improves upon that of alternative ones.