Bounded Rationality

Definition 1

Decision process strategy limited by human ability to process information proposed by Herbert Simon.

Source: Behavioral Science Lab, 2017

Definition 2

Bounded rationality is a concept proposed by Herbert Simon that challenges the notion of human rationality as implied by the concept of homo economicus. Rationality is bounded because there are limits to our thinking capacity, available information, and time (Simon, 1982).

Source: Behavioral Economics