Cited by 718Decision-Making and Behavioral EconomicsEconomic Theory and InstitutionsExperimental Behavioral Economics Studies

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Bounded Rationality

Simon, Herbert A.·1990·Utility and Probability

DOI 10.1007/978-1-349-20568-4_5

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Abstract

The term ‘bounded rationality’ is used to designate rational choice that takes into account the cognitive limitations of the decision-maker — limitations of both knowledge and computational capacity. Bounded rationality is a central theme in the behavioural approach to economics, which is deeply concerned with the ways in which the actual decision–making process influences the decisions that are reached.

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Authors: Simon, H. A.
Corresponding author: Simon, Herbert A.
Venue: Utility and Probability
Publisher: Palgrave Macmillan UK
Published: 1990
Pages: 15-18
DOI: 10.1007/978-1-349-20568-4_5
OpenAlex: W4249761288
Cited by: 705
References: 11
Citations by year: 2026: 68 · 2025: 100 · 2024: 113 · 2023: 105 · 2022: 96 · 2021: 66 · 2020: 66 · 2019: 12 · 2018: 5 · 2017: 7 · 2016: 7 · 2015: 7 · 2014: 5 · 2013: 4 · 2012: 3
FWCI: 4.16
Type: book chapter
Language: en
Open access: closed
Locations: Palgrave Macmillan UK eBooks (publishedVersion)
Topics: Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Theory and Institutions
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Experimental Behavioral Economics Studies
Keywords: bounded rationality, rational choice, cognitive limitations, computational power, behavioral economics, decision-making, limits of knowledge

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