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English definition of “bounded rationality”

bounded rationality

noun [U]    
ECONOMICS the theory that people can understand only a limited amount of information within a limited amount of time , and for this reason they do not always make the best decisions , especially in complicated situations : Managers constrained by bounded rationality cannot foresee all of the relevant behaviours needed for organizational effectiveness .
(Definition of bounded rationality noun from the Cambridge Business English Dictionary © Cambridge University Press)
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