A model of decision-making in which agents produce satisficing outcomes — decisions that are good enough — rather than optimal ones, bounded by three constraints: (1) limited cognitive capacity for processing information, (2) incomplete or imperfect information about alternatives and their consequences, and (3) finite time available to make the decision. The model carves bounded rationality from rational choice theory by specifying parameters for cognitive load, information quality, and time pressure that determine the satisficing threshold. It persists through academic teaching (economics, psychology, organizational theory), computational modeling, and policy design that incorporates realistic cognitive limits. [formal: rationalitas limitata | substrate: mind | horizon: generations | explicit: yes | epoch: 0.1]
Accepted ontology entry
bounded rationality
A model of decision-making in which agents produce satisficing outcomes — decisions that are good enough — rather than optimal ones, bounded by three constraints: (1) limited cognitive capacity for processing information, (2) incomplete or…
Definition
Why it is in scope
A human-made model of decision-making where agents make satisficing (adequate) rather than optimal decisions due to cognitive limitations, incomplete information, and time constraints. Developed by Herbert Simon as a more realistic alternative to rational choice theory. A conceptual framework for understanding the gap between ideal and actual human decision-making.
Names and aliases
- bounded rationalityen · CANONICAL
Relations from this entry
- cmrn9jrng0217d1nlbpyi9g3qDEPENDS_ON →
Bounded rationality (Simon) describes how humans use heuristics to compensate for limited cognitive capacity. Remove heuristics and bounded rationality as a framework stops operating — the theory is about heuristics as the mechanism filling the gap left by incomplete rationality. The removal test passes: without heuristics, bounded rationality has no content.
Relations to this entry
- cmrxtjvvw042jsoacc0hwd0xm← INSTANCE_OF
Decision fatigue is a specific phenomenon where decision quality deteriorates after prolonged choice, falling under the broader framework of bounded rationality (limits to human decision-making). INSTANCE_OF direction: specific phenomenon → general category. Removal test confirms: decision fatigue IS a kind of bounded rationality — a concrete manifestation of how human rationality is constrained.
Record identity
- Created
- Jul 23, 2026, 5:39 PM UTC
- Content hash
- 2f784eb8b849072a1d23b3396fe490083eae59eb8c62cbe15070cf42f1fd6f8c