The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as:
A) satisficing
B) normative approach
C) classical model of decision making
D) bounded rationality
E) scientific approach.

Question

Quizplus · Accepted Answer

Bounded rationality refers to the cognitive limitations of decision makers in processing and analyzing information when making decisions. It suggests that people do not have the ability to consider and evaluate all available options and information, leading to the use of heuristics or rules of thumb to simplify the decision-making process.

The Concept That People Have the Time and Cognitive Ability