satisfice


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satisfice

an approach to decision-making which aspires to achieve satisfactory but not optimum results. It can be a rational approach because it accepts that the perfect knowledge necessary to make the best decision is usually unattainable. Instead decision-makers will act in accordance with RULES OF THUMB which they know will at least achieve acceptable results. See ORGANIZATIONAL ANALYSIS, BUSINESS OBJECTIVES.
References in periodicals archive ?
Studies of Google-type searches, for example, show that researchers decide whether to satisfice, and read the first document that seems to be helpful, or to review search results before making a choice.
Behavioural economics also concurs with this concept that producers (and consumers) satisfice and Daly and Edis (2010b: 14) use this to argue that 'free permits represent an opportunity to gain rather than a serious competitive threat which forces a response'.
The work of Nelson and Winter,(13) drawing on the earlier research by Cyert and March(14) and Simon,(15) argues that firms tend to satisfice rather than maximize profits.
Although this certainly holds true under some conditions, it is possible that model creation itself is "costly" and that the production of a single model may allow reasoners to satisfice rather than reason through a problem exhaustively.
regulation to themselves, monopolistic regulators may also satisfice,
Liang and Parkhe (1997) argued that industrial buyers will optimize decision choice within the bounds of rationality, but beyond the bound, they will choose a more simplified decision process and satisfice (Cyert/March 1963, Simon 1978).
Suppose, that is, that there is some index of value that successful practical choice maximizes, or with respect to which it satisfices.
Satisficing -- Choosing the first strategic alternative that minimally satisfices the decision criteria.