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bounded rationality

The idea, from Herbert Simon (e.g., Simon, 1982), that human agents are rational in that they act so as to meet their goals according to their knowledge; they are only boundedly rational, however, in that they cannot necessarily compute ideal, optimal decisions. Instead, their decisions are bounded by environmental constraints on their performance (such as the need to act quickly), interacting with limits on access to knowledge and limits on the ability to process relevant information.