A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution. This is because aiming for the optimal solution may necessitate needless expenditure of time, energy and resources. The term "satisfice" was coined by American scientist and Noble-laureate Herbert Simon in 1956.

Investopedia Says:
The theory of satisficing finds application in a number of fields including economics, artificial intelligence and sociology. Satisficing implies that a consumer, when confronted with a plethora of choices for a specific need, will select a product or service that is "good enough", rather than expending effort and resources on finding the best possible or optimal choice.

Related Links:
Learn how individual decision-making turns the gears of our economy. Understanding Microeconomics
This tutorial teaches the basics of one of the most important economic topics. A must for all investors. Microeconomics: Assumptions and Utility
This tutorial teaches the basics of one of the most important economic topics. A must for all investors. Microeconomics: Factors Of Consumer Decision-Making
This tutorial teaches the basics of one of the most important economic topics. A must for all investors. Microeconomics: Factors Of Business Decision-Making
This tutorial teaches the basics of one of the most important economic topics. A must for all investors. Microeconomics: Microeconomics in Action

Copyright ©2010, Investopedia.com - Owned and Operated by Investopedia US, A Division of ValueClick, Inc. All rights reserved.