Bounded Rationality (original) (raw)

Abstract

The term ‘bounded rationality’ is used to designate rational choice that takes into account the cognitive limitations of the decision-maker — limitations of both knowledge and computational capacity. Bounded rationality is a central theme in the behavioural approach to economics, which is deeply concerned with the ways in which the actual decision–making process influences the decisions that are reached.

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Authors

Herbert A. Simon
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John Eatwell Murray Milgate Peter Newman

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Simon, H.A. (1990). Bounded Rationality. In: Eatwell, J., Milgate, M., Newman, P. (eds) Utility and Probability. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20568-4\_5

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DOI: https://doi.org/10.1007/978-1-349-20568-4\_5
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-49541-4
Online ISBN: 978-1-349-20568-4
eBook Packages: Palgrave Economics & Finance Collection Economics and Finance (R0)