Bounded rationality

From CNM Wiki
Revision as of 10:42, 10 July 2020 by Kainat9 (talk | contribs)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Bounded rationality is a process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.


Definitions

According to Organizational Behavior by Robbins and Judge (17th edition),

Bounded rationality. A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

According to Management by Robbins and Coulter (14th edition),

Bounded rationality. Decision-making that is rational, but limited (bounded) by an individual's ability to process information.

According to the Corporate Strategy by Lynch (4th edition),

Bounded rationality. The principle that managers reduce tasks, including implementation, to a series of small steps, even though this may grossly oversimplify the situation and may not be the optimal way to proceed.



Related concepts

Related lectures