bounded rationality
/ˌbaʊndɪd ˌræʃəˈnælɪti/
decision-making limited by information, time, and cognitive capacity
bounded rationality in a sentence
“Bounded rationality explains satisficing behavior.”
Origin of bounded rationality
From bounded + rational (Latin rationalis of reason)
Related Words
loss aversion
the tendency to prefer avoiding losses over acquiring gains
anchoring
over-relying on the first piece of information encountered
endowment effect
valuing something more simply because you own it
hyperbolic discounting
preferring smaller immediate rewards over larger later ones
framing effect
different reactions to the same information based on presentation
herd behavior
following the crowd rather than independent analysis