"Bounded rationality means that people make quite reasonable decisions based on the information they have. But they don't have perfect information, especially about more distant parts of the system. [...] We don't even interpret perfectly the imperfect information that we do have, say behavioral scientists. [...] Which is to say, we don't even make decisions that optimize our own individual good, much less the good of the system as a whole."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Donella Meadows, Thinking in Systems: A Primer, Chelsea Green Publishing, 2008, pages 106-107106-107 106/107 (ISBN 9781603580557).
https://en.wikiquote.org/wiki/Bounded_rationality
Revision History
No revisions have been submitted for this quote.
Categories
Bounded rationality
25 quotes on TrueQuotesView all quotes by Bounded rationality →
Related Quotes
"Both from these scanty data and from an examination of the postulates of the economic models it appears probable that…"
"The type of rationality we assume in economics — perfect, logical, deductive rationality — is extremely useful in gen…"
"There are two basic ways market organization is brought about... Some combination of the two is usual the case:"
"# Strategic structuring, informal or formal, whereby social agents, including the state, establish a rule regime regu…"
"# Emergent structuring, whereby participants discover or adopt certain similar strategies within bounded rationality …"
"The term “bounded rationality” was coined in the 1950s by Herbert A. Simon."
"Models of bounded rationality describe how a judgement or decision is reached (that is, the heuristic processes or pr…"
"One is forced to assume that ordinary people have the computational capabilities and statistical software of economet…"
"Although contributions of many writers have helped the rise of behavioral economics including psychologists Kahneman …"
"All that most economists know about Herbert Simon is that he wrote about bounded rationality and organizational behav…"