'Satisficing' MIF

The MIF: “Still beyond repair” – 23 from the UP School of Economics
“Nothing is beyond repair – just satisfice.” – Davao-born UP alumnus, Ph.D.
“I can repair your head.” – my barber in Davao, Ph.D. of Things, University of the Streets

In addressing the critics' concerns regarding the proposed Maharlika Investment Fund (MIF), it is essential to delve into the concept of "satisficing" as proposed by Herbert Simon, the Nobel laureate and renowned scholar in the field of decision-making. Simon's work on bounded rationality provides valuable insights that can shed light on the ongoing discussions surrounding the MIF Bill and the differing opinions among ex-perts. Simon argued that individuals and organizations are bound by cognitive limitations and face constraints such as limited time and information when making decisions. In complex systems such as the creation and management of wealth funds, it is unrealistic to expect decision-makers to thoroughly analyze and evaluate every possible option to identify the optimal solution. Instead, they can adopt a satisficing approach, aiming to find a solution that is "good enough" to fulfill their goals and the interest of the community they serve, given the constraints they face.

In systems thinking, "satisficing" is a concept that refers to making decisions or taking actions that are satisfac-tory or "good enough" rather than seeking the optimal or perfect solution. The term combines the words "satisfy" and "suffice" and was coined by the Nobel laureate Herbert Simon. It acknowledges that in complex systems, it is often difficult or even impossible to determine the best possible outcome due to various fac-tors, uncertainties, and interdependencies. Herbert Simon, an American economist, psychologist, and com-puter science pioneer, introduced the concept of satisficing in his work on decision-making processes. It can provide valuable insights that can shed light on the ongoing discussions surrounding the MIF Bill and the dif-fering opinions among experts. Individuals and organizations are bound by cognitive limitations and face con-straints such as limited time and information when making decisions. Thus, in complex systems such as the creation and management of wealth funds, it is unrealistic to expect decision-makers to thoroughly analyze and evaluate every possible option to identify the optimal solution. Instead, they can adopt a satisficing ap-proach, aiming to find a solution that is "good enough" to fulfill their goals given the various constraints that they face.

Satisficing is based on the understanding that systems are dynamic and ever-changing, and it emphasizes adaptability and flexibility in decision-making. By embracing satisficing, systems thinkers acknowledge the limitations of attempting to find the perfect solution and instead prioritize finding solutions that are good enough to address the current situation and move the system forward.

Emphasizing the pursuit of satisfactory outcomes rather than unattainable perfection, the purpose-driven individuals who perceive SWFs as a type of CWF can apply a simplified but purposeful perspective that aligns with the essence of satisficing, promoting constructive dialogue and a holistic understanding of the goals and constraints of the proposed MIF Bill.

In conclusion, Herbert Simon's concept of satisficing and bounded rationality provides a valuable lens through which to address the concerns raised by the critics of MIF. By embracing a framework grounded in satisficing, we can move forward by leveraging diverse perspectives, promoting dialogue, and seeking satisfactory out-comes that align with the purpose and objectives of these Wealth Funds.

“SATISFICING” – notes from my Advisor, Davao-born, UP alumnus, Ph.D.
Now living in the land of the free, his patriotism is silent but on fire.

BARBER’S CUT – from my barber in Davao City,
patriotism is not silent and on fire.

To the 23 Professors from UP: -- your facts and analyses are great, but your conclusion can be repaired.
To Ph Legislators, SWF Creators, and Organizers: -- make sure it is SATISFICING and GOOD ENOUGH.
My dear barbers: -- go for it, fix our heads, make them good enough!

To anyone who says – “This is beyond repair”,
economist, banker, investor, rich, poor, farmer,
doctor, to you I say: -- Nothing is beyond repair!

Compiled by: Bob Calida 21 June 2023

References:

Simon, H. A. (1955). A Behavioral Model of Rational Choice. The Quarterly Journal of Economics, 69(1), 99-118.
Simon, H. A. (1972). Theories of Bounded Rationality. In C. B. McGuire & R. Radner (Eds.), Decision and Organization (pp. 161-176). North-Holland Publishing Company.
Wilson, D. S., & Gowdy, J. M. (2013). Evolution as a General Theoretical Framework for Economics and Public Policy. Journal of Economic Behavior & Organization, 90, S3-S10.