Definitionv1DF-297
Bounded rationality
the concept that human decision-making is constrained by limited information, limited time, and limited cognitive resources, leading to satisficing rather than optimizing behavior, where the act of modeling one's own cognition competes for the same finite processing resources that are being observed
Why This Is a Definition
This definition names 'bounded rationality', situates it within the category of decision-making constraints (genus), and precisely identifies what distinguishes it (limited resources, satisficing vs optimizing, resource competition in self-modeling) - all of which are core to the lesson's argument about metacognitive limitations.