Bounded rationalist 16.422 Criticism for the application of classical decision theory Unbounded rationality -humans make rational decisions, but they do so without time constraints, with complete a priori knowledge and unlimited computational abilities Bounded rationality: concept of satisficing which occur when decision makers stop the search for a solution when the first alternative is found that meets all constraints Probably not the optimal solution Fast frugal heuristicsBounded Rationality • Criticism for the application of classical decision theory – Unbounded rationality - humans make rational decisions, but they do so without time constraints, with complete a priori knowledge, and unlimited computational abilities • Bounded rationality: concept of satisficing, which occur when decision makers stop the search for a solution when the first alternative is found that meets all constraints – Probably not the optimal solution • Fast & frugal heuristics 16.422