Reference: Herbert Simon, Nobel prize winning economist - introduced satisficing in the 1950s - and suggested that when all the costs of decision making are accounted for (time, money, emotions) then satisficing is the maximising strategy.
Insight: The decision to maximise or satisfice as an individual often depends on the situation.
Insight: We all have the capacity to satisfice.
Insight: Maximisers have relative standards, satisficers have absolute ones - "the best" is often prone to comparison with others. Satisficing involves judging against one's own standards, rather than comparing with others.
Insight: Marketing and social media is always trying to convince you that "good enough" isn't good enough - there is always "better" out there.
Principle: Satisfice more - let go of trying to achieve "the best".
Reference: Herbert Simon - coined satisficing in the 1950s.
Insight: As humans, we crave the illusion of certainty - when we should aim to be more "vaguely right".
Insight: Satisficing is contrasted to maximising in problem solving - when we have incomplete information (usually) it is often better to satisfice.
Insight: Satisficing is optimal because it is better to find satisfactory solutions in a realistic world than perfect solutions in an unrealistic one.
Insight: Heuristics are the practice of satisficing - and are often best.
Insight: "Irrational" behaviour is often clever satisficing - doing what is least likely to be disastrous.
Reference: Herbert Simon - the idea of stopping when you get a satisfactory solution.
Insight: Maximising can mean we take forever to reach decisions.
Insight: Satisficing accounts for the fact that we are "boundedly rational" - we act with the information available to us, but cannot have all information.
Insight: Satisficers are usually happier people, and less prone to the "hedonic treadmill".
Reference: Herbert Simon 1956 - named the concept of satisficing - settling for good enough outcomes.
Insight: Behavioural economists have pushed back on the idea of "pursuing the best option".
Insight: Satisficing is a strategy for coping with excess of options.
Insight: Satisficing factors in the cost of time taken to weigh up options.
Definition: Searching for alternatives that are good enough.
Insight: When satisficing we can terminate decision making when any alternative that is good enough to satisfy the important considerations.
Insight: The process of making a decision cannot go on forever, the important decision is when to stop searching for alternatives.
Definition: Settling for good enough.
Insight: It is often irrational to maximise satisfaction, despite what traditional economists say - rationality is often settling for good enough.
Insight: Satisficing can be seen as living the virtue of moderation over greed.
Definition: Settling for good enough.
Insight: Two strategies for decision making: maximising vs satisficing.
Insight: Maximisers might achieve more, but take longer to reach decisions, and are usually less happy because of a tendency to dwell on what could have been.
Definition: Looking for good enough.
Example: Setting a minimum score (e.g. 7) and considering anything above the bar to be the same.
Key Insights & Principles
Decision Making
Satisficing is often the optimal strategy in decision making, relative to a maximising strategy which can be costly in time, energy and resources spent.
We can never have complete information.
Satisficers are less prone to social comparison bias.
Social media is directly opposed to satisficing - always trying to convince us that there is better.
Humans crave the illusion of certainty, and thus maximising is appealing.
Heuristics help us practice satisficing.
Satisficers are usually happier - less prone to the hedonic treadmill.
Actively look to satisfice when decision making.
Set minimum criteria for an acceptable solution; seek solutions that fit the criteria; choose the first option that fits; settle.
