Bounded rationality:
A) should be avoided.
B) involves an 8-step decision making process, including both problem identification and problem solution.
C) proves to us that even when time and resources are limited, we should quantify as much as possible to weigh all alternatives correctly.
D) describes how decisions actually have to be made under severe time and resource constraints.

Question

Quizplus · Accepted Answer

Bounded rationality describes how decisions actually have to be made under severe time and resource constraints. This means that in situations where time and resources are limited, decision makers must use a simplified decision-making process and may not be able to consider all available information and alternatives. Therefore, it is important to understand bounded rationality to make effective decisions in these situations.

Bounded Rationality