bounded rationality

Meaning

1. 1noununcountabletechnical

   The idea that people make decisions that are only reasonably good, because they have limited information, time and mental ability.

   Grammar: Uncountable: bounded rationality explains this, not a bounded rationality.

   Patterns

   • bounded rationality in something

   Bounded rationality explains why shoppers pick a good-enough product instead of comparing every option.

   The manager's choice reflected bounded rationality, since she had one afternoon and little data.

   Economists use bounded rationality to model how real people decide.

Common combinations

theory of bounded rationality

The theory of bounded rationality changed how economists view choice.

assume bounded rationality

The model assumes bounded rationality rather than perfect logic.

model bounded rationality

Researchers try to model bounded rationality in games.

limits of bounded rationality

Time pressure shows the limits of bounded rationality.

Synonyms and how they differ

limited rationality

This is a plainer wording of the same idea, but bounded rationality is the standard academic term.

satisficing

Satisficing names the habit of accepting a good-enough option, which is one result of bounded rationality.

Opposites

Word family

bounded adjective

limited or restricted

rational adjective

based on reason

rationality noun

the quality of being reasonable

rationally adverb

in a reasonable way

Commonly confused: bounded rationality or irrationality?

Practice

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Write a sentence using “bounded rationality”, then check it and compare it with the examples above.

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