Define rationality or bounded rationality with examples?

Answer 1

We are, to some extent, rational beings in that we will try to logically understand things and make sensible choices.

Another way to look at bounded rationality is that, because decision-makers lack the ability and resources to arrive at the optimal solution, they instead apply their rationality only after having greatly simplified the choices available. Thus the decision-maker is a satisficer, one seeking a satisfactory solution rather than the optimal one.

Example

I choose a new hi-fi system based on reading a few magazines and listening to several friends. When the sales person offers me a better bargain, I still turn it down.