Herbert Simon introduced bounded rationality in his 1947 work Administrative Behavior, arguing that human decision-makers cannot achieve perfect rationality due to cognitive limitations, incomplete information, and time constraints. Instead of optimizing, they satisfice — choosing a solution that is 'good enough.' This challenged the classical rational model and earned Simon the Nobel Prize in Economics (1978). Note: The options in the original paper listed 'None of these' as the correct answer since Herbert Simon was not among the options.