bounded rationality

decision making in which the processes used are rational within the constraints imposed by (a) limitations in the individual’s knowledge; (b) human cognitive limitations generally; and (c) empirical factors arising from the complex, real-life situations in which decisions have to be made. The concept was introduced by Herbert A. Simon as a corrective to the assumption of classical economic theory that individuals can and will make ideally informed and rational decisions in pursuit of their own self-interest (see rational-economic man). See procedural rationality; substantive rationality. See also satisfice.

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Psychology term of the day

May 9th 2024

cognitive ethology

the study of mental experiences, including consciousness and intentionality, in nonhuman animals and of the influence of these experiences on the animals’ behavior as they interact with their natural environment. Whether, and which, animals actually possess consciousness and intentionality remains a subject of controversy. [proposed in 1978 by U.S. zoologist Donald Redfield Griffin (1915–2003)]