Which concept describes decisions made with limited time and cognitive capacity?

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Bounded rationality explains decisions made under constraints of limited time and limited cognitive capacity. It recognizes that people don’t have the bandwidth to search and evaluate every possible option or to compute the optimal outcome. Instead, they construct simplified models, use heuristics, and stop when they find a satisfactory solution rather than the absolute best one. This tendency to settle for a “good enough” option within the given limits is the natural outcome of bounded rationality. Intuition relies on quick, experience-based judgments, which can arise under time pressure but isn’t defined by the constraint of cognitive limits in the same formal way. Evidence-based management focuses on using solid evidence to inform choices, not specifically on the time or cognitive constraints shaping the decision process.