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Satisficing: Integrating Two Traditions

Author

Listed:
  • Florian M. Artinger
  • Gerd Gigerenzer
  • Perke Jacobs

Abstract

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.

Suggested Citation

  • Florian M. Artinger & Gerd Gigerenzer & Perke Jacobs, 2022. "Satisficing: Integrating Two Traditions," Journal of Economic Literature, American Economic Association, vol. 60(2), pages 598-635, June.
    • Handle: RePEc:aea:jeclit:v:60:y:2022:i:2:p:598-635
    DOI: 10.1257/jel.20201396
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    Cited by:

    1. Marion Collewet & Paul Koster, 2023. "Preference estimation from point allocation experiments," Tinbergen Institute Discussion Papers 23-0012/VIII, Tinbergen Institute.
    2. Collewet, Marion & Koster, Paul, 2023. "Preference estimation from point allocation experiments," Journal of choice modelling, Elsevier, vol. 48(C).
    3. Alexander Gutfraind, 2023. "Risk-reducing design and operations toolkit: 90 strategies for managing risk and uncertainty in decision problems," Papers 2309.03133, arXiv.org.

    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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