Bounded rationality is decision making where individuals are confronted with too many options and cannot consider the implications of all of them and tend to reduce the considered number of options to a manageable number.

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Bounded rationality refers to the concept in decision-making theory that individuals are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. Therefore, they cannot consider all possible options and their implications, leading them to simplify their choices to a manageable number.

Bounded Rationality Is Decision Making Where Individuals Are Confronted with Too