Simon’s Principles of Decision-Making

Simon’s Principles of Decision-Making emphasize that humans often operate under limitations, which he termed "bounded rationality." Rather than assessing every possible option, people simplify their choices by relying on heuristics or rules of thumb. This involves identifying the most crucial factors in a decision, generating satisfactory solutions rather than perfect ones, and using the available information effectively. Simon suggested that effective decision-making combines both intuitive and analytical approaches, acknowledging that while we aim for rational decisions, real-life constraints often shape our choices.