Answer:
theory of bounded rationality
Explanation:
theory developed by Herbert Simon, a Nobel Laureate in economics
Bounded rationality theory proposes that when faced with decisions, we tend to satisfice rather than optimize
This is further explained below.
Generally, The concept of bounded rationality proposes that humans' capacity for rational thought is constrained throughout the decision-making process. Given these constraints, rational persons would choose an option that is satisfying rather than one that is ideal.
In conclusion, According to the bounded rationality hypothesis, when we are forced to make choices, we have a tendency to settle for an option that satisfies our needs rather than one that offers the most benefits.
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