Cognitive Limits

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August 31, 2024 4 min read Definitions
Bounded Rationality: Understanding Human Decision-Making Limitations
Economics Behavioral Science Bounded Rationality Decision Making Behavioral Economics Cognitive Limits Satisficing
Bounded rationality explains the constraints of human information processing and decision-making. It challenges the model of the all-knowing, optimal decision-maker in economics, emphasizing limited alternatives and satisficing behaviors.
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