Bounded rationality is a human decision-making process in which we attempt to satisfice, rather than optimize. In other words, we seek a decision that will be good enough, rather than the best possible decision.

What do you mean by bounded rationality in decision making?

Bounded rationality is a human decision-making process in which we attempt to satisfice, rather than optimize. In other words, we seek a decision that will be good enough, rather than the best possible decision.

What is bounded rationality and satisficing?

Bounded rationality thinking is limited by the available information, the tractability of the decision problem, the cognitive limitations of our minds, and the time available to make the decision. This type of thinking is called “satisficing,” or doing the best you can with what you have.