GENERAL KNOWLEDGE

Detailed explanation-1: -According to Simon, because humans cannot possibly obtain or process all the information needed to make fully rational decisions, they instead seek to use the information they do have to produce a satisfactory result, or one that is “good enough.” He described humans as being bounded by their own “cognitive limits."

Detailed explanation-2: -But the truth is that we are often irrational creatures driven by emotions and prejudices, and this is what psychologists call “bounded rationality.” Bounded rationality occurs when we make decisions based on limited information. It may lead to suboptimal decisions as it only considers some available options.

Detailed explanation-3: -Herbert Simon (1916-2001) is most famous for what is known to economists as the theory of bounded rationality, a theory about economic decision-making that Simon himself preferred to call “satisficing”, a combination of two words: “satisfy” and “suffice”.