Glossary
Satisficing
What is satisficing?
Satisficing means choosing an option that meets your requirements instead of searching for the best possible option. Herbert Simon used it in his account of bounded rationality: people have limited time, information, and capacity to compare choices.
How satisficing works
Set the conditions an acceptable option must meet, look for an option that meets them, and stop when you find one. Someone using this approach can be called a satisficer. The strategy can apply to a consumer purchase or an organizational choice; the appropriate standard depends on the decision.
Example of satisficing
A buyer sets a budget, delivery deadline, and minimum quality standard. They choose the first supplier that meets all three. The search ends when they find an acceptable option.
Why it matters
More searching has a cost. Finding a slightly better supplier may not justify another week of calls. But a standard set too low can leave you with a poor choice. The useful question is whether your requirements and search effort fit the decision.
In Simon's model, the threshold for an acceptable option can also change with experience.