Utility maximization problem: Difference between revisions

Revision as of 11:49, 26 September 2004

Revision as of 01:47, 9 October 2004

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In practice, a consumer may not always pick an optimal package. For example, it may require too much thought. [[Bounded rationality]] is a theory that explains this behaviour with [[satisficing]] - picking packages that are suboptimal but good enough.

==See also==

*[[Utility function]]

*[[Expenditure Minimization Problem]]

*[[Profit Maximization Problem]]

==References==