This paper is about satisficing behaviour. Rather tautologically, this is when decision-makers are satisfied with achieving some objective, rather than in obtaining the best outcome. The term was coined by Simon (Q J Econ 69: [99][100][101][102][103][104][105][106][107][108][109][110][111][112][113][114][115][116][117][118] 1955), and has stimulated many discussions and theories. Prominent amongst these theories are models of incomplete preferences, models of behaviour under ambiguity, theories of rational inattention, and search theories. Most of these, however, seem to lack an answer to at least one of two key questions: when should the decision-maker (DM) satisfice; and how should the DM satisfice. In a sense, search models answer the latter question (in that the theory tells the DM when to stop searching), but not the former; moreover, usually the question as to whether any search at all is justified is left to a footnote. A recent paper by Manski (Theory Decis. doi:10.1007/s11238-017-9592-1, 2017) fills the gaps in the literature and answers the questions: when and how to satisfice? He achieves this by setting the decision problem in an ambiguous situation (so that probabilities do not exist, and many preference functionals can therefore not We would like to thank an anonymous referee for very helpful comments on an earlier version of this paper. Electronic supplementary materialThe online version of this article (doi:10.1007/s11238-017-9600-5) contains supplementary material, which is available to authorized users. be applied) and by using the Minimax Regret criterion as the preference functional. The results are simple and intuitive. This paper reports on an experimental test of his theory. The results show that some of his propositions (those relating to the 'how') appear to be empirically valid while others (those relating to the 'when') are less so.

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Aim of this study is to identify the existence of Wagner's Law in Indonesia economy during post-reformation era. This study takes period sample of five regimes during 1999 -2011, which are following: a) Development Reformation Regime; b) National Unity Regime; c) Mutual Cooperation Regime; d) Indonesia Unite I Regime; e) Indonesia Unite II Regime. In order to test the existence of Wagner's Law, we also elaborate exogenous variable (tax revenue and population) as variable control. We find the result that Wagner Law did occur in postreformation era by performing an ARDL co-integration model, yet volatility of government expenditure has to be captured. Hence, we run a GARCH model to estimate the volatility of government expenditure by elaborating the regime variable. The ARDL approach, causality test and co-integration test also support the existing of Wagner Law in this study

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