bounded rationality

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bounded rationality

a model of human action in which choices are seen as limited and imperfect in terms of knowledge of the situation and expected outcomes; action is therefore never completely rational. The concept originated in the work of March and Simon (1958) and Simon (1957a & b) on DECISION MAKING in organizations. Their work was critical of the model or IDEAL TYPE of perfect rationality presented in economic theories of the firm; in contrast to the assumption of profit maximization in economic theory March and Simon argued that actual behaviour in organizations was SATISFICING rather than ‘optimizing’ in terms of the achievement of goals. This approach to ‘subjective rationality’ has been influential in the sociology of organizations (see ORGANIZATION THEORY) because it demonstrated the way in which organizational structure (DIVISION OF LABOUR, SOCIALIZATION, AUTHORITY) and channels of communication limit the range of solutions considered.
References in periodicals archive ?
Unfortunately, the hyperrational solution offers little for considering the decisions of human agents.
This challenging method of thinking symbolically is a practice of Jungian psychology that the authors contend has become lost in our hyperrational society, and they show how working with the Medusa myth offers a guide through personal transformation.
If this sort of criticism has its limitations--it is necessarily inexact, deeply subjective, and as much about the critic as the poet--then it likewise lays bare the shortcomings of its Amoldian counterpart, which appears desiccated and hyperrational by comparison.
Although some find motivational issues for this rationality (e.g., Selten 1990), Williamson (2010, 219) concludes that stakeholders "are neither hyperrational nor irrational but are attempting effectively to cope with complex contracts that are incomplete." The contract is seen as a framework, an incomplete and often not very accurate indication of the relationship in question.
As they did so, the fundamental focus of study shifted from understanding how imperfect people coordinate their actions with others to an exercise in modeling representative automatons as hyperrational, maximizing agents.
Still shaken by this experience during the concert of mystical songs presented by the legendary Lebanese nun, the hyperrational Orientalist finds himself overwhelmed as the palpable grief in the nun's piercing voice unravels his cherished sense of scientific detachment: "Was he about to succumb, in this godforsaken church near Jenin, to the same strange need to cry?" (227).
Probably inspired by films like To Catch a Thief (1955), the repressed, frustrated, hyperrational Betty Ann, after the failure of her dreary affair with Magruder, directs her new fantasy towards the mysterious and fascinating jewel thief, who embodies an escape from the social repression she represents, a repression with which, like any romantic comedy character, she is unconsciously unsatisfied.
Clearly, the scientific findings synthesized herein have important implications for the representativeness of public bureaucracies, the role of the bureaucracy in society, the hyperrational division of labor inherent in bureaucratic organization, and Weber's theory of bureaucracy.
(104) Posner himself could therefore rightly argue that some of the insights that are ascribed to behavioural economics are already a part of economic analysis of law 'which long ago abandoned the model of hyperrational, emotionless, unsocial, supremely egoistic, non-strategic man or woman' that some appear to ascribe to it.
(24) Just as Thatcher's leadership was premised on an investment in her adoption of an authoritarian hyperrational certainty and moral consistency, so Blair, with his own brand of chappish honesty and expressive openness, attempted to lead through emotional conviction.
First, perhaps consumers are hyperrational and hypersensitive about placebo effects.
He can (and has) been read in the opposite way (by critics such as Bramhall): as someone who reduces all to a hyperrational, self-serving calculus.