Bounded rationality is what occurs when an economic actor does something that **is** rational _given their perspective_ on system boundaries, but with a broader perspective does them (or their population) harm. This has to do with "The Tragedy of the Commons". # Examples - Farmer who gets more wool from additional sheep, procures as many sheep as they can. However too many sheep procured by all farmers leads to devastation of the land. - Your perception of your [[Stress]] leads you to think you should skip your workout and get yourself ice cream, but ultimately this contributes to health problems (which may be the source of your stress) **** ## Source - [[Thinking in Systems]] ## Related - [[Rule Beating]]