satisficingpäätöksentekoa

Satisficing decision-making, or satisficingpäätöksentekoa in Finnish, is a decision-making strategy where individuals choose an option that is "good enough" rather than searching for the optimal solution. The term was coined by Nobel laureate Herbert Simon. It contrasts with the concept of optimizing, which aims to find the very best possible outcome.

In practice, satisficing occurs when the costs of extensive search and analysis outweigh the potential benefits of finding a superior option. This approach is particularly common when faced with complex problems, limited time, or incomplete information. Instead of evaluating every single possibility, a satisficer sets a minimum threshold of acceptability and selects the first option that meets this standard.

The underlying principle of satisficing is bounded rationality. Simon argued that human cognitive abilities are limited, and therefore, perfectly rational decision-making, as assumed in traditional economic models, is often unrealistic. Satisficing is a practical adaptation to these cognitive limitations. It acknowledges that finding the absolute best solution might be impossible or prohibitively expensive, making a satisfactory outcome a more achievable and efficient goal.

Examples of satisficing can be found in everyday life, such as choosing a restaurant that looks decent rather than researching every eatery in town, or accepting a job offer that meets most criteria rather than holding out for a perfect match. While satisficing can lead to suboptimal choices in some cases, it is often a highly effective strategy for navigating the complexities of modern decision-making.