Bounded rationality
Bounded rationality is a process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
Definitions
According to Organizational Behavior by Robbins and Judge (17th edition),
- Bounded rationality. A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
According to Management by Robbins and Coulter (14th edition),
- Bounded rationality. Decision-making that is rational, but limited (bounded) by an individual's ability to process information.
According to the Corporate Strategy by Lynch (4th edition),
- Bounded rationality. The principle that managers reduce tasks, including implementation, to a series of small steps, even though this may grossly oversimplify the situation and may not be the optimal way to proceed.
