The Bounded Rationality Theory was proposed by Herbert Simon and it states that human cognition is not perfect and is flawed. One's reasoning can have fails which restricts the decision making and eventually coming to an optimal one.
The theory states that a person tends to take irrational decisions since his/her rational thinking is in fact limited by his/her cognitive skills, the available time and the complexity of such problem.
When solving a problem, one can never truly fix it in a completely optimal way since it is impossible to think of all the solutions to the problem.
Ella is teaching her parrot a new word. Every time the parrot says a sound that is close to the new word, she gives it a treat. But the parrot keeps repeating other words it has learned in the past, trying to get a treat that way. The parrot is exhibiting generalization.
