Premium
PSYCHOLOGICAL DETERMINANTS OF BOUNDED RATIONALITY: IMPLICATIONS FOR DECISION‐MAKING STRATEGIES
Author(s) -
Taylor Ronald N.
Publication year - 1975
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1975.tb01031.x
Subject(s) - satisficing , bounded rationality , rationality , cognition , management science , bounding overwatch , ecological rationality , rational planning model , psychology , computer science , cognitive psychology , operations research , social psychology , economics , microeconomics , artificial intelligence , epistemology , mathematics , management , philosophy , neuroscience
In this paper the implications of cognitive strain for decision‐making effectiveness are explored. Literature concerning the psychological processes of decisionmakers which underlie the operation of cognitive strain and which predispose them to the effects of cognitive strain, is reviewed. Next, the impact of cognitive strain on narrowly constraining or “bounding” rational decision‐making is examined, and the choice strategies of satisficing and incrementalizing are criticized as failing to broaden the bounds of rational decision‐making. Finally, elements of an eclectic choice strategy designed to assist decision‐makers handle the informational demands of complex decision problems are discussed.