In Administrative Behavior, bounded rationality is largely characterized as a residual category - rationality is bounded when it falls short of omniscience. And the failures of omniscience are largely failures of knowing all the alternatives, uncertainty about relevant exogenous events, and inability to calculate consequences. There was needed a more positive and formal characterization of the mechanisms of choice under conditions of bounded rationality... Two concepts are central to the characterization: search and satisficing. (Herbert Simon)

In Administrative Behavior, bounded rationality is largely characterized as a residual category - rationality is bounded when it falls short of omniscience. And the failures of omniscience are largely failures of knowing all the alternatives, uncertainty about relevant exogenous events, and inability to calculate consequences. There was needed a more positive and formal characterization of the mechanisms of choice under conditions of bounded rationality... Two concepts are central to the characterization: search and satisficing.

Herbert Simon

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behavior category central characterization choice formal inability knowing omniscience positive rationality residual search short uncertainty under conditions falls consequences

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