satisfice

economics

Written by

The Information Architects of Encyclopaedia Britannica

Last updated

July 15, 2026

Quick Summary

Satisficing is an economic decision-making concept where individuals pursue the minimum satisfactory outcome rather than the optimal one. This approach acknowledges that gathering all information and evaluating every possible alternative is often impractical due to time and resource constraints. Instead of maximizing, people "satisfice" by choosing the first acceptable option they encounter. This behavior is also known as bounded rationality, recognizing that human decision-making is limited by the information available and the decision-maker's cognitive abilities. The term "satisfice" is a blend of "satisfy" and "suffice".12

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

3 Britannica Sources

Ask Britannica AI about this topic

Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.

Herbert A. Simon
…is the concept of “satisficing” behaviour—achieving acceptable economic objectives while minimizing complications and risks—as contrasted with the traditional emphasis on maximizing profits. Simon’s theory thus offers a way to consider the psychological aspects of decision making that classical economists have tended to ignore.
Read More
…is the concept of “satisficing” behaviour—achieving acceptable economic objectives while minimizing complications and risks—as contrasted with the traditional emphasis on maximizing profits. Simon’s theory thus offers a way to consider the psychological aspects of decision making that classical economists have tended to ignore.
Read More