Satisficing

Discipline: Economics

Satisficing is the pursuit by a firm of satisfactory profits instead of maximum profit because the company has as its goal some other objective such as maximum market share, sales or management satisfaction.

The concept of 'satisfactory' profits is subjective and varies from firm to firm.

Also see: bureaucracy, managerial theories of the firm, organization theory, theory of the firm, theory of the growth of the firm

Source:
S G Winter, 'Satisficing, Selection and the Innovating Remnant', Quarterly Journal of Economics, vol. LXXXV (1971), 237-61

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