Explore the concept of bounded rationality in this lecture from MIT's Industrial Organization I course. Delve into the idea that individuals make decisions that are satisfactory rather than optimal due to cognitive limitations and time constraints. Learn how this principle applies to economic behavior and decision-making processes. Gain insights from instructor Glenn Ellison as he discusses the implications of bounded rationality on consumer choices and market outcomes. Understand how this concept challenges traditional economic models and provides a more realistic framework for analyzing human behavior in various economic contexts.