AOI Economic Terms: Satisficing!

Pick the First Tree That Makes Everyone Happy!
Pick the First Tree That Makes Everyone Happy!

Satisfice is a term coined by Herbert Simon (1957) as a cross between satisfying and sufficing. To Simon, Satisficing is “accepting a choice or judgment as one that is good enough, one that satisfies.” Put succinctly, satisficing is making the first available economic choice that works.

When Christmas tree shopping with four hungry kids, one of whom desperately needs a nap, it is best to satisfice, load the tree up, and get home as quickly as possible.  Or try to optimize by just walking around in the cold, with some of the kids mad and other kids crying, and rapidly lose your mind.

Post Script. Once the tree is home, and everyone is decorating it and you get to watch, it’s more than worth the trouble.

Sometimes Satisficing = Optimizing!
Sometimes Satisficing = Optimizing!

4 thoughts on “AOI Economic Terms: Satisficing!

  1. “Satisfice” is the best new word! Thanks for that. Hope you and your family had a lovely Christmas and I hope you all have a terrific and joyous New Year!

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