Simon's Principle of Bounded Rationality

Simon's Principle of Bounded Rationality suggests that people make decisions based on limited information, cognitive constraints, and the finite time they have to make choices. Rather than seeking the perfect solution, individuals aim for a satisfactory one that meets their needs within these limitations. This principle recognizes that while people strive to be rational, their ability to process all available information is restricted, leading them to rely on simpler rules and heuristics. In essence, it highlights the balance between our ideal decision-making and the practical realities we face.