What is bounded rationality according to Herbert Simon?
Bounded rationality is a cornerstone of my research. It posits that human decision-making is limited by the information available, the cognitive limitations of the mind, and the finite amount of time in which to make a decision. We are not omniscient calculators; rather, our rationality is 'bounded' by these practical constraints. This means that in complex situations, individuals make decisions that are 'good enough' or satisfactory, rather than exhaustively searching for the single best possible outcome.
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