Bounded Rationality
Decision-makers are limited in their rationality by the cognitive limitations of their minds (experience, logic), the time available to make a given decision, and the tractability of the decision problem itself (deciding the right thing at all). They are looking for a satisfactory solution rather than an optimal one. From Herbert A. Simon.
Origin
The concept was developed by Herbert Simon at Carnegie Mellon University, introduced in a 1955 paper in the Quarterly Journal of Economics and expanded in Models of Man (1957), where the phrase "bounded rationality" first appeared. Simon argued that real decision-makers satisfice — choose a solution that is "good enough" — rather than optimize, because perfect information and unlimited computation are unavailable in practice. He received the Nobel Prize in Economic Sciences in 1978 for this work.