Question

Who is associated with the concept of 'Bounded Rationality'?

• A. Charles E. Lindblom
• B. Herbert Simon
• C. Thomas R. Dye
• D. Yehezkel Dror

Hint:

Remember the keyword "Satisficing".
It is a combination of "satisfy" and "suffice", a term central to Simon's theory of bounded rationality.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Bounded rationality is the idea that in decision-making, the rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.
Step 2: Detailed Explanation:
The concept of Bounded Rationality was proposed by Herbert Simon in his influential book "Administrative Behavior" (1947).
Simon challenged the "Rational Economic Man" model, which assumed that decision-makers have perfect information and can maximize their utility.
Instead, Simon argued that because of human limitations, people do not "maximize" but rather "satisfice"—they look for a course of action that is satisfactory or "good enough".
Other scholars mentioned:
- Lindblom is known for 'Incrementalism' (The Science of Muddling Through).
- Yehezkel Dror is known for the 'Normative Optimum Model'.
Step 3: Final Answer:
Herbert Simon is associated with the concept of Bounded Rationality.