Which of the following accepts the notion of bounded rationality and assumes that decision makers act only in terms of what they perceive about a given situation?
A) Behavioral decision theory
B) Perceptive decision theory
C) Cognitive decision theory
D) Classical decision theory
E) Visual decision theory

Question

Quizplus · Accepted Answer

Behavioral decision theory recognizes that decision makers are limited by their cognitive capabilities and information constraints, and only act based on their perception of the situation. This is in contrast to classical decision theory, which assumes that decision makers are rational and have access to complete information. Therefore, A) Behavioral decision theory is the best choice.

Which of the Following Accepts the Notion of Bounded Rationality