Herbert Simon's concept of bounded rationality explained
Bounded rationality acknowledges that our minds, like computers, have limited processing power and memory. When faced with a problem, we cannot explore every possible solution. Instead, we search for information and evaluate alternatives only until we find an option that meets our aspiration level. This is satisficing – finding a satisfactory outcome within our cognitive and informational constraints, rather than striving for the absolute optimum, which is often unattainable or too costly to discover.
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