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Bounded rationality is the idea that rationality is limited when individuals make decisions, and under these limitations, rational individuals will select a decision that is satisfactory rather than optimal.
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rationality bounded economics rational decision decisions information heuristics economic theory cognitive models optimal make simon making concept social decision-making agents
| Subject | Predicate | Object | Confidence | Src |
|---|---|---|---|---|
| Bounded rationality | is a | idea that rationality is limited when individuals make decisions | 0.90 | text |
| fairness | instance of | bounded selfishness suggests that people also have social preferences and care about factors | 0.80 | text |
| reciprocity | instance of | bounded selfishness suggests that people also have social preferences and care about factors | 0.80 | text |
| and the well-being of others | instance of | bounded selfishness suggests that people also have social preferences and care about factors | 0.80 | text |
| in-group favoritism | instance of | people's concern for others is often bounded in the sense that it is limited in scope and can be influenced by factors | 0.80 | text |
| emotional distance | instance of | people's concern for others is often bounded in the sense that it is limited in scope and can be influenced by factors | 0.80 | text |
| fear | instance of | The study focused on the emotions behind decision making | 0.80 | text |
| personal likes | instance of | The study focused on the emotions behind decision making | 0.80 | text |
| dislikes | instance of | The study focused on the emotions behind decision making | 0.80 | text |
| found these to be significant factors in economic decision making.Bounded rationality is also shown to be useful in negotiation techniques as shown in research undertaken by Dehai et al. that negotiations done using bounded rationality techniques by labourers | instance of | The study focused on the emotions behind decision making | 0.80 | text |
| companies when negotiating a higher wage for workers were able to find an equal solution for both parties | instance of | The study focused on the emotions behind decision making | 0.80 | text |
| Bounded rationality | related to background | Bounded | 0.60 | section |
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