Simon's Bounded Rationality

Simon's Bounded Rationality theory suggests that when making decisions, individuals are limited by the information they have, their cognitive abilities, and the time they have to make choices. Instead of seeking the perfect solution, people often settle for a "satisfactory" one that meets their needs, given these constraints. This concept highlights that human decision-making is not always perfectly rational, as we operate within limits that affect our ability to analyze every possible option. Thus, we often make good enough choices rather than the best possible ones.