Economics Supply And Demand Questions
Bounded rationality refers to the idea that individuals have limited cognitive abilities and information, which affects their decision-making process. It suggests that individuals make decisions that are rational within the constraints of their knowledge and cognitive abilities.
On the other hand, satisficing is a decision-making strategy where individuals aim to find a satisfactory solution rather than an optimal one. It involves selecting the first option that meets a certain threshold of acceptability, rather than exhaustively searching for the best possible outcome.
In summary, bounded rationality refers to the cognitive limitations individuals face in decision-making, while satisficing is a decision-making strategy that focuses on finding satisfactory solutions rather than optimal ones.