Reference Entry

satisficing

Nigar Hashimzade, Gareth Myles and John Black

in A Dictionary of Economics

Fifth edition

Published in print January 2017 | ISBN: 9780198759430
Published online January 2017 | e-ISBN: 9780191819940
satisficing

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A decision-making strategy that aims at reaching an adequate outcome rather than an optimal outcome. Examples of satisficing are charging a fixed mark-up over costs, and purchasing the same bundle of commodities each week. Satisficing is often justified on the grounds that optimizing involves costly information collection and processing. As an economic theory it fails to explain why optimization is not undertaken incorporating these additional costs....

Reference Entry.  67 words. 

Subjects: Economics

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