Bounded rationality means that people make quite reasonable decisions based on the information they have. But they don’t have perfect information, especially about more distant parts of the system. Fishermen don’t know how many fish there are, much less how many fish will be caught by other fishermen that same day. Businessmen don’t know for sure what other businessmen are planning to invest, or what consumers will be willing to buy, or how their products will compete. They don’t know their current market share, and they don’t know the size of the market. Their information about these things
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