Herbert A. Simon Quote

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.

p. 502; As cited in Barros (2010, p. 464-5). - "Rational decision making in business organizations", Nobel Memorial Lecture 1978