The-definition.com

Definition

Bounded rationality

Bounded rationality is a decision making that’s rational but limited (bounded) by an individual’s ability to process information.

Share it:  Cite

More from this Section

  • BCG matrix
    A strategy tool that guides resource allocation decisions on the basis of market share ...
  • Divisional Structure
    The Divisional Structure is an organizational structure made up of separate business units ...
  • Labor union
    A labor union is an organization that represents workers and seeks to protect their interests ...
  • Global industry
    Industry in which competition crosses national borders . A global industry is one that ...
  • Reinforcement theory
    The reinforcement theory says that behavior is a function of its consequences. Reinforcement ...