Bounded Rationality
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
Simon proposed that people make 'satisficing' decisions under constraints of information, time, and cognitive ability, rather than fully rational optimal decisions.
SCAFFOLDING EFFECT
Reduce cognitive load
Bounded rationality is the idea that rationality is limited when individuals make decisions, and under these limitations, rational individuals will select a decision that is satisfactory rather than optimal. Limitations include the difficulty of the problem requiring a decision, the cognitive capabi…
Anchor fast decisions
Herbert Simon proposed that people, limited by information, time, and cognitive ability, cannot find the optimal solution but only seek a 'good enough' satisfactory solution. The mechanism is suboptimality under cognitive constraints.
MINIMUM ACTION
In progress 0/3Practice this model in one real situation:
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Bounded_rationalityverified
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