| Bounded rationality: Bounded rationality is a concept suggesting that decision-making is limited by cognitive abilities, information, and time constraints. It acknowledges that individuals make choices based on available information, heuristics, and simplified models rather than exhaustive analysis, leading to satisficing outcomes rather than always optimizing decisions in complex situations. See also Decisions, Decision theory, Rationality. _____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. |
