Bounded rationality means:
A) that rationality is an unrealistic expectation in business
B) that people must respect the boundaries in their interactions with others
C) that people have limits, or boundaries, on how rational they can be
D) that decision makers choose the first solution alternative that satisfies minimal decision criteria
E) None of these choices.

Question

Quizplus · Accepted Answer

Bounded rationality means that people have limits, or boundaries, on how rational they can be. This means that decision makers may not consider all available options and may settle on a solution that is not necessarily optimal but meets their minimum criteria. It does not mean that rationality is unrealistic, that people must respect boundaries in their interactions, or that decision makers always choose the first solution alternative.

Bounded Rationality Means