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paribus (all things being equal, which they never are) in economic
theory. The impact of this kind of thinking is a first cousin to the old
military saw that no plan survives its first contact with the enemy.

Recognition of the true uncertainty inherent in a dynamic, largely

unpredictable, complex context, is reflected in the academic
community in five lines of thought that seek to move us away from
pure rational (reductionist) thinking:

● Sensemaking: The construct of sensemaking was originated by

sociologist Karl Weick, the academic definition of sensemaking
is "the ongoing retrospective development of plausible images
that rationalize what people are doing" (Weick, Sutcliffe, &
Obstfeld, 2005, p. 409). The key terms are 'retrospective'

implying a rationalization of the past (which we know is
weakened by inadequate data) as a guide to the future, and
'plausible' implying that the acceptance of the rationalization is a

social process of group agreement open to corruption by
inadequate understanding, personal bias, and misinterpretation
of the originator's ideas. Sensemaking leads to the development
of a narrative about what has happened, what is happening, and

what will happen. Such narratives become embedded and help
form part of the accepted history or myth of society.

● Bounded Rationality: Originated by polymath Herbert

Simon, bounded rationality is the idea that when individuals
make decisions, their rationality is limited by the tractability of
the problem, the cognitive limitations of their minds, and the
time available to make the decision. Decision-makers in this

view act as satisficers, seeking a satisfactory solution rather
than an optimal one. Bounded rationality has become a
foundation concept of behavioral economics as the subject tries

to shake off the shackles of reductionist, rational thinking.

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