The term ‘bounded rationality’ was coined by Simon in his book ‘Models of Man’ (1957). Simon (1955) proposed satisficing as a more accurate way to model human decision-making behavior: Rather than ...

bounded rationality: because contracting parties are unaware of all possible states of ... The fact that contracts are incomplete allows for opportunistic behavior, or opportunism. [Incompleteness ...

Motivated by recent developments in the bounded rationality and strategic complementarity literatures, we examine an intentionally simple and stylized aggregative economic model, when the assumptions ...

That is, this neural mechanism is part of what enables the strategy selection of adaptive heuristics based on the evaluation of past behavior. In conclusion, as such references to strategy selection ...

Does bounded rationality make paternalism more attractive? This Essay argues that errors will be larger when suppliers have stronger incentives or lower costs of persuasion and when consumers have ...

Zhang, Ting, Pinar O. Fletcher, Francesca Gino, and Max H. Bazerman. "Reducing Bounded Ethicality: How to Help Individuals Notice and Avoid Unethical Behavior." Special Issue on Bad Behavior.