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Bounded Rationality

  • Herbert A. Simon
Part of the The New Palgrave book series (NPA)

Abstract

The term ‘bounded rationality’ is used to designate rational choice that takes into account the cognitive limitations of the decision-maker — limitations of both knowledge and computational capacity. Bounded rationality is a central theme in the behavioural approach to economics, which is deeply concerned with the ways in which the actual decision–making process influences the decisions that are reached.

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Bibliography

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1990

Authors and Affiliations

  • Herbert A. Simon

There are no affiliations available

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