What does bounded rationality mean?
Definitions for bounded rationality
bound·ed ra·tio·nal·i·ty
This dictionary definitions page includes all the possible meanings, example usage and translations of the word bounded rationality.
Wikipedia
Bounded rationality
Bounded rationality is the idea that rationality is limited when individuals make decisions: by the tractability of the decision problem, the cognitive limitations of the mind, and the time available to make the decision. Decision-makers, in this view, act as satisficers, seeking a satisfactory solution rather than an optimal one. Herbert A. Simon proposed bounded rationality as an alternative basis for the mathematical modeling of decision-making, as used in economics, political science and related disciplines. It complements "rationality as optimization", which views decision-making as a fully rational process of finding an optimal choice given the information available. Simon used the analogy of a pair of scissors, where one blade represents "cognitive limitations" of actual humans and the other the "structures of the environment", illustrating how minds compensate for limited resources by exploiting known structural regularity in the environment.Some models of human behavior in the social sciences assume that humans can be reasonably approximated or described as "rational" entities (see for example rational choice theory, or Downs Political Agency Models). Many economics models assume that people are on average rational, and can in large enough quantities be approximated to act according to their preferences. The concept of bounded rationality revises this assumption to account for the fact that perfectly rational decisions are often not feasible in practice because of the intractability of natural decision problems and the finite computational resources available for making them.
Numerology
Chaldean Numerology
The numerical value of bounded rationality in Chaldean Numerology is: 9
Pythagorean Numerology
The numerical value of bounded rationality in Pythagorean Numerology is: 2
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"bounded rationality." Definitions.net. STANDS4 LLC, 2024. Web. 29 Apr. 2024. <https://www.definitions.net/definition/bounded+rationality>.
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