Abstract
We consider a common managerial problem where an agent strives to achieve a prescribed target. We use this problem as a vehicle for comparing and discussing two approaches to decision making: optimising and “satisficing” (where the latter is a neologism due to H. Simon, 1976 Economics Nobel Prize Winner). We compute the optimising and satisfactory strategies for the problem at hand and highlight the differences in their outcomes.
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The authors acknowledge Victoria University of Wellington Research Grants 95939 and 32665.
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Krawczyk, J.B., Sissons, C. & Vincent, D. Optimal versus satisfactory decision making: a case study of sales with a target. Comput Manag Sci 9, 233–254 (2012). https://doi.org/10.1007/s10287-012-0141-7
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DOI: https://doi.org/10.1007/s10287-012-0141-7