"The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world - or even for a reasonable approximation to such objective rationality." (Herbert A Simon, "Administrative Behavior", 1947)
"The first consequence of the principle of bounded rationality is that the intended rationality of an actor requires him to construct a simplified model of the real situation in order to deal with it. He behaves rationally with respect to this model, and such behavior is not even approximately optimal with respect to the real world. To predict his behavior we must understand the way in which this simplified model is constructed, and its construction will certainly be related to his psychological properties as a perceiving, thinking, and learning animal." (Herbert A Simon, "Models of Man", 1957)
[*]"A decision theory that rests on the assumptions that human cognitive capabilities are limited and that these limitations are adaptive with respect to the decision environments humans frequently encounter. Decision are thought to be made usually without elaborate calculations, but instead by using fast and frugal heuristics. These heuristics certainly have the advantage of speed and simplicity, but if they are well matched to a decision environment, they can even outperform maximizing calculations with respect to accuracy. The reason for this is that many decision environments are characterized by incomplete information and noise. The information we do have is usually structured in a specific way that clever heuristics can exploit." (E Ebenhoh, "Agent-Based Modelnig with Boundedly Rational Agents", 2007)
"Bounded rationality [...] is the rationality that takes into account the limitations of the decision maker in terms of information, cognitive capacity, and attention as opposed to substantive rationality, which is not limited to satisficing, but rather aims at fully optimized solutions." (Jean-Charles Pomerol & Frédéric Adam, "Understanding the Legacy of Herbert Simon to Decision Support Systems", 2008)
"You can’t navigate well in an interconnected, feedback-dominated world unless you take your eyes off short-term events and look for long term behavior and structure; unless you are aware of false boundaries and bounded rationality; unless you take into account limiting factors, nonlinearities and delays." (Donella H Meadow, "Thinking in Systems: A Primer", 2008)
[*] "Conceptual model that assumes individuals are intentionally rational, i.e. they try to maximize their decisions. However, this ideal model is almost impossible to apply in practice: actions and decisions are taken and performed by individuals whose knowledge of the alternatives and the consequences is incomplete; in addition, preferences are subject to change and are not always clearly orderable." (Maddalena Sorrentino & Marco De Marco, "Developing an Interdisciplinary Approach to the Evaluation of E-Government Implementation", 2009)
[*] "The assumption that agents have limited ability to acquire and process information and to solve complex economic problems. These limitations imply that expectations can diverge from RE [Rational Expectationa]." (Sebastiano Manzan, Agent Based Modeling in Finance", 2009)
[*] "Refers to the difficulties faced by an individual in obtaining, memorizing, and processing information in an actionable manner. Although he/she may want to act rationally, the individual can only do so in a limited way, without being able to take into account all desirable information or all possible options. This limited way consists in acting on the basis of knowledge that is deemed acceptable and sufficient, rather than complete knowledge, and of simple rules, rather than a comprehensive method; and in taking shortcuts whenever possible." (Humbert Lesca & Nicolas Lesca, "Weak Signals for Strategic Intelligence: Anticipation Tool for Managers", 2011)
[*] "The theory that personal rationality is bounded by our ability to process information, our cognitive limitations, and the finite time we have to make a decision. Although our decisions are still rational, they are rational within these constraints and, therefore, may not always appear to be rational or optimal." (Evan Stubbs, "Delivering Business Analytics: Practical Guidelines for Best Practice", 2013)
[*] "The principle that the rationality of human beings is constrained ('bounded') by the limits of their cognition and capacity to process information." (Robert M Grant, "Contemporary Strategy Analysis" 10th Ed., 2018)
[*] "A situation in which people have a limited capacity to anticipate, solve complex problems, or enumerate all options." (Jeffrey M Perloff & James A Brander, "Managerial Economics and Strategy" 2nd Ed., 2016)
[*] "A concept that explains behavior that diverges from the standard assumption of a fully rational economic agent. It occurs due to limitations of cognitive ability and access to information for decision making." (Ashlesha Khedekar-Swaminathan, "Behavioral Strategies to Achieve Financial Stability in Uncertain Times", 2019)
"Bounded rationality means rationality within limits or bounds set by incomplete information, cognitive limitations of mind and limited time available for taking the decision." (Anubhuti Dwivedi, "Peace in Economic Equilibrium: A Micro-Perspective", 2019)
[*] "Paradigm that explains agents’ strategic decision-making based on the imperfect information available to them and the expectations they have that dictate whether they will view the results as satisfactory. It leads on to the idea of adaptive learning and trial-and-error processes." (César Camisón, "Neurostrategy", 2021)
[*] "The idea that decision making deviates from rationality due to such inherently human factors as limitations in cognitive capacity and willpower, and situational constraints." (Shaun Ruysenaar, "Thinking Critically About the Fourth Industrial Revolution as a Wicked Problem", 2021)
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