Limitations of Rationality

Limitations of rationality refer to the idea that people, despite trying to make logical decisions, often face challenges that prevent perfect reasoning. These include limited information, cognitive biases, emotional influences, and time constraints. As a result, decisions may be flawed or less optimal than they could be if all factors were known and processed without error. Recognizing these limitations helps us understand why human judgment isn’t always perfectly rational and highlights the importance of strategies to improve decision-making despite these constraints.