Conceptualization and Measurement of Optimal Consumer Decision‐Making

The theory of optimal choice is founded on the classic principles of maximization and rationality which are developed in economics and other social sciences. The principle of maximization is applicable to the analysis of consumers' choices in contexts ranging from individual consumer decisions to efficient operation of consumer markets in aggregate. Newer and revised formulations of maximization have evolved in the related concepts of satisficing behavior, efficiency of choice, decision quality and choice accuracy. This paper reviews the evolution of these concepts, with special attention to the context of optimal consumer choice at the individual level. Empirical measures of optimal consumer decision‐making are also reviewed. Finally, optimal consumer decision‐making is conceptualized both in terms of 1) optimal outcomes (choices) and 2) optimality of the actual decision‐making process prior to choice.