satisficing

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satisficing

the behaviour of an individual or firm in which, partly as the result of inadequate information, rather than seeking to maximize profits. etc. as in orthodox theories of economic rationality, a 'satisfactory’ level of return is sought. Thus within the firm, organizational objectives such as increased size, prestige, or security, may have a greater priority than the maximization of profit. see also ORGANIZATIONAL CULTURE. ORGANIZATION THEORY.
References in periodicals archive ?
To satisfice is to adopt a behavior, accept a result, or choose a product that is "satisfactory or 'good enough'" in a particular situation "without first examining all possible alternatives.
Our explanation of the home bias puzzle is based on using the info-gap robustness function to satisfice the profit and to maximize the immunity to uncertainty.
Regardless of how one perceives the desirability of attempting to satisfice strategic outcomes, there is increasing empirical evidence to support the case that this approach is more conducive to strategic decision success.
we pay more than we want to," or "Sometimes we think the contractor could have done it quicker and he takes less than he wants," suggest that each firm satisfices rather than maximizes on price in embedded relationships.
The same trade-off between additional work and publisher quality may come into play with jointly authored volumes; the problem here is likely to arise if some authors prefer to satisfice on press quality while others are maximizers.
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.
Lester argued there may be no decline in employment because many firms satisfice with respect to profit (by allowing a certain amount of slack in the production process) and, hence, can offset the higher costs from a moderate hike in the minimum wage through increased management efficiency (the so-called shock effect).
People are more likely to work in teams and to satisfice (accept available options and alternatives as satisfactory) rather than study alone and search comprehensively,
Voters are content to satisfice in terms of outcomes, rather than maximizing for the best possible outcome, because it secures a higher payoff over the range of cases to focus on the elimination of the negative outliers.
In other words, the bureaucratic tendency to satisfice by looking to benefit-cost ratios will have been replaced by a willingness to assume greater proportions of fiscal risk for the common good.
Although all the information in the world may ultimately someday be on the Internet, there is some emerging evidence that consumers satisfice in their information search process.
The purpose of this section was to determine whether computer firms are motivated to maximize profits or to satisfice.