bounded rationality
Simon's theory that real decision-making is constrained by limited information, cognitive capacity, and time, rather than perfect optimization. Foundational to AI models of human reasoning.
1 milestone
Herbert A. Simon Awarded Nobel Memorial Prize in Economic Sciences for Bounded Rationality
In 1978, Herbert A. Simon of Carnegie Mellon University received the Nobel Memorial Prize in Economic Sciences for his theory of bounded rationality, which holds that human decision-making seeks satisfactory rather than optimal solutions owing to cognitive and informational constraints.