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The Incentives Lab
HBT-COG-0110 · Dimension COG · Cognition

Bounded Rationality

Decisions are constrained by available information, cognitive limits, and time.

Decision·Mental Model·Grade B·draft· enriching…

Scientific Definition

Decisions are constrained by available information, cognitive limits, and time.

Plain-English Definition

Decisions are constrained by available information, cognitive limits, and time.

Feynman Explanation

We don't optimize. We satisfice.

Core Principle

Decisions are constrained by available information, cognitive limits, and time.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Decisions are constrained by available information, cognitive limits, and time.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Real decision systems are bounded — design them for that, not for ideals.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

We don't optimize. We satisfice.

Examples

Everyday
  • Choosing the first acceptable option rather than the best one.
Modern (Organizational)
  • Real decision systems are bounded — design them for that, not for ideals.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Build decision processes that minimize required cognition under pressure.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
B (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
3 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Real decision systems are bounded — design them for that, not for ideals.
Amplifying Incentives
Real decision systems are bounded — design them for that, not for ideals.
Org Failure Modes
Real decision systems are bounded — design them for that, not for ideals.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Build decision processes that minimize required cognition under pressure.
Diagnostic Questions
  • Build decision processes that minimize required cognition under pressure.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Build decision processes that minimize required cognition under pressure.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-COG-0110 · COG
Bounded Rationality
BRRu10/10/10 RuleAbAbsent-MindednessABAlternative BlindnessAPAlternative PathsAPAnalysis ParalysisAnAnchoringADAsian Disease ProblemABAttentional BiasABAutomation BiasBEBezold Effect

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.