SATISFICING

Risk Management and Decision Making Glossary

Risk Management and Decision Making — Satisficing

Information on Satisficing

Satisficing is a method for making a choice from a set of alternatives encountered sequentially when one does not know much about the possibilities ahead of time. In such instances, there may be no optimal solution for when to stop searching for further alternatives. Satisficing takes the shortcut of setting an adjustable aspiration level and ending the search for alternatives as soon as one is encountered that exceeds the aspiration level (Simon, 1956: 129-138; 1990: 1-19). Satisficing is a form of bounded rationality. For a detailed explanation of rationality see Gigerenzer, et. al., 1999.

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