satisficing


satisficing
A term used in economic theory to describe how people make rational choices between options open to them and within prevailing constraints. Herbert A. Simon (Administrative Behaviour, 1957) argued that decision-makers can rarely obtain and evaluate all the information which could be relevant to the making of a decision. Instead, they work with limited and simplified knowledge, to reach acceptable, compromise choices (‘satisficing’), rather than pursue ‘maximizing’ or ‘optimizing’ strategies in which one particular objective is fully achieved. Satisficing is sometimes also referred to as a strategy of disjointed incrementalism.
The adoption of satisficing models instead of maximizing models of behaviour has been found useful in the theory of the firm and corporate behaviour. For example, to maximize its profits a firm needs complete information about its costs and revenues, which in practice is available only after the event. Satisficing models replace the search for the optimum outcome, which may be unattainable, with rules of thumb and compromises which work well enough. See also bounded rationality ; organization theory.

Dictionary of sociology. 2013.

Look at other dictionaries:

  • Satisficing — (a portmanteau of satisfy and suffice ) is a decision making strategy which attempts to meet criteria for adequacy, rather than to identify an optimal solution. A satisficing strategy may often be (near) optimal if the costs of the decision… …   Wikipedia

  • Satisficing — setzt sich aus den englischen Wörtern satisfying (=befriedigend) und suffice (=genügen) zusammen. Satisficing tritt in folgenden Bereichen auf: in der Entscheidungsfindung bzw. Psychologie, siehe Satisficing (Entscheidungsfindung) in der… …   Deutsch Wikipedia

  • Satisficing — A decision making strategy that aims for a satisfactory or adequate result, rather than the optimal solution. This is because aiming for the optimal solution may necessitate needless expenditure of time, energy and resources. The term satisfice… …   Investment dictionary

  • satisficing —   accepting what is satisfactory rather than chasing the maximum possible outcome …   Geography glossary

  • Satisficing — alternative Verhaltensannahme im Rahmen der Haushalts oder Unternehmenstheorie gegenüber dem Postulat der Nutzenmaximierung. ⇡ Haushalte maximieren demgemäß ihren ⇡ Nutzen nicht, sondern streben ein „befriedigendes Nutzenniveau“ an. Das S.… …   Lexikon der Economics

  • satisficing —  Aiming for a predetermined level of profit or sales, rather than profit maximizing …   American business jargon

  • satisficing — satˈisficing noun • • • Main Entry: ↑satisfice …   Useful english dictionary

  • Satisficing (Entscheidungsfindung) — Satisficing ist ein Begriff der Entscheidungstheorie und bezeichnet die Strategie, in einer Entscheidungssituation nicht nach der optimalen Lösung zu suchen, sondern sich mit der erstbesten Möglichkeit zu begnügen, die den angestrebten Zweck… …   Deutsch Wikipedia

  • Satisficing (Wirtschaft) — Satisficing oder Anspruchserfüllung beschreibt das Verhalten, in einer Entscheidungssituation die erstbeste Möglichkeit zu wählen, die den angestrebten Zweck bzw. ein zuvor definiertes Anspruchsniveau erfüllt. Das Anspruchsniveau kann sich jedoch …   Deutsch Wikipedia

  • satisficing behaviour — Behaviour by a company or an individual that is aimed at achieving satisfactory returns rather than optimum profit or growth. Given the limitations on any individual s knowledge of the total market situation, this is often a more rational… …   Big dictionary of business and management


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.