What is the concept of bounded rationality in behavioral economics?

Bounded rationality is a concept in behavioral economics that explains how people make decisions when they have limited information and time. Instead of being perfectly rational and considering all possible options, individuals often rely on shortcuts or rules of thumb to reach a decision that is "good enough" for their needs. For example, if you're trying to choose a restaurant but only have a few minutes, you might pick the first place you see rather than researching all the best options. This means that people often settle for satisfactory choices instead of the best ones because they can't process all the information available. Ultimately, bounded rationality helps us understand that human decisions are often influenced by limitations and context rather than pure logic.