Satisficing: Integrating Two Traditions

Florian Artinger; Gerd Gigerenzer; Perke Jacobs

doi:10.1257/jel.20201396

Satisficing: Integrating Two Traditions

Florian Artinger¹; Gerd Gigerenzer²; Perke Jacobs³

¹ Max Planck Institute for Human Development, Simply Rational—The Decision Institute, and Berlin International University of Applied Sciences. · ² Max Planck Institute for Human Development, Simply Rational—The Decision Institute, and Harding Center for Risk Literacy. · ³ Max Planck Institute for Human Development

Journal of Economic Literature 2022 open access

In 1955, Herbert Simon introduced the notion of satisficing: an agent satisfices by searching for an alternative that meets an aspiration level but does not optimize. We survey more than 60 years of advances in understanding satisficing in economics, psychology, and management, identifying two research traditions that address two classes of situations: under risk, satisficing is typically inferior to optimization strategies and modeled according to the neoclassical framework; under uncertainty, satisficing strategies are often derived empirically and can be highly effective. We integrate the two research traditions and show the conditions under which satisficing can be rational. (JEL D11, D80, D90)

DOI: 10.1257/jel.20201396
Volume: 60 (2)
Pages: 598-635
Language: en
Export: BibTeX
Sources: openalex crossref