In the context of human compromises in decision making, which of the following statements is true of bounded rationality?
A) It occurs when a decision maker tends to select an alternative that he or she has tried before and that has delivered acceptable results.
B) It occurs when a decision maker settles for an alternative that he or she considers good enough because other limitations make finding the best alternative impossible.
C) It occurs when a decision maker relies on his or her intuition and gut instincts while analyzing alternatives instead of collecting impartial data.
D) It occurs when a decision maker assumes that everyone around sees things the way he or she does.

Question

Quizplus · Accepted Answer

Bounded rationality refers to the limitations on a decision maker's ability to process information and make optimal decisions. When faced with constraints such as time, resources, and cognitive limitations, the decision maker may settle for a solution that is considered good enough instead of continuing to search for the best alternative. This is known as satisficing, which is the act of searching for and choosing alternatives until an acceptable minimum is found, rather than seeking the best possible outcome.

In the Context of Human Compromises in Decision Making, Which