Satisficing – definition

Satisficing is a concept that relates to the behaviour of firms, and was introduced by Herbert Simon in 1956.  Neo-classical economic theory assumes that firms attempt to maximise profits, but the ideas associated with satisficing questions this assumption. A satisficing firm is not attempting to maximise anything, but it is trying to achieve an acceptable level of a single objective or an acceptable mix of other objectives, of which profit is only one. It represents a solution to the problem of not being able to establish an optimal decision regarding business decision-making cannot be determined.