2023-09-04 07:05:00
Bounded rationality is a concept coined by Herbert Simon that recognizes that humans cannot always make decisions completely rationally due to various cognitive, information, and resource limitations. This approach contrasts with the “economic man” model in traditional economics, which assumes that people are rational optimizers and that they always make decisions to maximize their utility, since bounded rationality suggests that people often operate within constraints and They make decisions that are satisfactory, but not necessarily optimal.
Thus, cognitive limitations include the limited ability to process information completely and accurately. People do not always have access to all relevant information and may have difficulty processing it effectively. This can lead to biases and errors in decision making.
For their part, information limitations refer to the lack of access to complete or accurate data on the available options and their potential results. In many cases, people must make decisions based on incomplete or uncertain information.
While, on the other hand, resource limitations, such as time and mental energy, can also affect the ability to make completely rational decisions. People don’t always have the time or resources to analyze all options in depth, which can lead to mental shortcuts and simplified decisions.
In summary, bounded rationality recognizes that people make decisions within cognitive, informational, and resource constraints. This has led to a more realistic and nuanced understanding of human decision making in economic theory and other related fields. However, it is evident that this approach lends much more uncertainty to the decision-making process by incorporating additional musings from others regarding what limitations affect them and to what extent.
#Limited #Rationality #Comercio