Question

What is the difference between optimizing and satisficing? What firms do in reality?

Answer 1

Business isn't so bad, but for a complete study, there's still not enough details. With information limitations it may be impossible to analyze thoughtfully. There are two ends of a spectrum to approach this from: to satisfy and optimize. Satisfying a combination of the words "satisfy" and "sufficiency" means settling for a solution that is less than perfect when working with limited information. Optimizing involves collecting as much data as possible and trying to find the optimal choice. In general, decision-makers don't choose one or the other you might think you 're satisfied with optimizing as a spectrum, and each decision begins with an assessment of how critical it is.

In decision making, satisfying refers to the use of levels of aspiration when selecting from different paths of action. Using this account, decision-makers choose the first choice that satisfies a specific need, or choose the alternative that appears to satisfy most needs rather than the "optimal" solution.

Another key issue relates to an assessment of satisfying strategies. Although often viewed as an inferior decision strategy, it has been shown that specific satisfying inference strategies are ecologically rational, that is to say, decision environments in particular, they can outperform alternative decision strategies.