Herbert Simon

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August 31, 2024 4 min read Definitions
Bounded Rationality: The Realistic Decision-Making Paradigm
Economics Behavioral Finance Decision Making Rationality Behavioral Economics Cognitive Limitations Herbert Simon
Bounded Rationality describes the practical decision-making processes individuals and organizations use when perfect information is unavailable, emphasizing satisfactory outcomes over optimal ones. It addresses the limitations of human cognition in economic models.
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August 31, 2024 4 min read Definitions
Satisficing: Accepting an Adequate Solution Instead of an Optimal One
Economics Decision Theory Decision Making Optimization Herbert Simon Rationality Cognitive Limitations
An in-depth exploration of the concept of satisficing, its historical context, applications, and significance in decision-making.
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