Bounded Rationality

Also found in: Wikipedia

0.01 sec.

Bounded Rationality

The theory that humans attempt to make rational decisions, but their ability to do so is limited by knowledge, ability to know, inadequate time to consider and other factors. Bounded rationality may explain situations like panic buying, in which investors continue to buy a security long after it ceases to be rational to do so. Investors may believe the price for the security may continue to rise and may not believe they have enough time to find out for certain. Bounded rationality claims people aim for rationality but cannot be reasonable all the time. See also: Behavioral economics.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
No references found			Presidency scholars now talk of principals and agents, residual decision rights, signaling, bounded rationality, and monitoring. Thoughts on "The Revolution in Presidential Studies" by Mayer, Kenneth R. / Presidential Studies Quarterly Part IV turns to globalization and the challenge to look outside of oneself and beyond our bounded rationality to view the world. The Sustainable Enterprise Fieldbook by Williams, Michael / People & Strategy In his work on Bounded Rationality, Simon found that in the real world people make decisions by simpler models, without integrating the complexity of the situation. Are the investors really behaving badly? by Gulf News (United Arab Emirates)			Bottle Hanger Bottleneck Bottom bottom feeder Bottom Fisher Bottom Fishing Bottom Line bottom-fishing Bottom-Up Equity Management Style Bottom-Up Investing bottomland Bottomline growth Bottomry Bought Deal Bought Ledger Boulewarism Bounce Bounce Back Bounce Message Bounced Check Bound Bound Rate boundary Boundary Conditions boundary line disputes Bounded Rationality Bounty Bourse Bourse de commerce Bourse de Montreal, Inc. Boutique Boutique Agency BOV Bow-Tie Loan Bowie Bonds BOX Box Size Box Spread Box-Jenkins Model Boxtop Offer Boycott BP Curve BPA Statement BPS BR Bracero Bracket Bracket Creep Bracket Indexation Bracketed Buy Order Bracketing			Bounded Crystal Orbital Bounded Diameter Minimum Spanning Tree bounded difference Bounded Distance Decoder Bounded Exhaustive Testing Bounded Flooding Routing Algorithm Bounded from above Bounded from below Bounded function Bounded function Bounded function bounded growth Bounded Input, Bounded Output Bounded Intensity Process bounded interval Bounded linear operator bounded linear transformation Bounded map bounded maximum parallel form Bounded measure Bounded metric Bounded metric Bounded metric space Bounded metric space Bounded Model Checking Bounded operator Bounded Probability Polynomial bounded product Bounded Rationality Bounded Rationality in Economic Behaviour Unit Bounded rationalityt Bounded real-valued data Bounded real-valued data Bounded Relative Error Bounded Running Digital Sum Bounded sequence Bounded set Bounded Shortest Multicast Algorithm Bounded Socio-Technical Experiment Bounded space Bounded space Bounded subset bounded sum Bounded type Bounded types Bounded Uncorrelated Jitter Bounded Variable Least Squares Bounded variation Bounded Variation Quantity Bounded Weak-Echo Region bounded with precision Bounded-Delay Encodable Code Bounded-Delay-Encodable Block-Decodable Bounded-Delay-Encodable Block-Decodable - Look-Ahead Bounded-probability Quantum Polynomial

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.