According to Herbert Simon,people do not always live up to ideal goals of rationality in making decisions.Rather,they tend to use simple strategies which only focus on a few facets of the available options.What is this behavioural economic theory called

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This theory is called the theory of bounded rationality, which suggests that people have limitations in their ability to make completely rational decisions due to cognitive limitations such as a limited attention span or lack of information. Instead, people tend to rely on simplified decision-making strategies that help them make decisions that are "good enough" rather than optimal.

According to Herbert Simon,people Do Not Always Live Up to Ideal