When bounded rational decision makers focus on alternatives that are ''good enough'' rather than on finding the best possible solution, they engage in:
A) heuristics.
B) satisficing.
C) programmed decision making.
D) nonprogrammed decision making.

Question

Quizplus · Accepted Answer

Satisficing is the process of selecting the first solution that meets a minimum set of criteria, rather than aiming for the optimal solution. Bounded rational decision makers, who face limitations in time, information, and cognitive abilities, often adopt this strategy to simplify the decision-making process and quickly arrive at a satisfactory outcome. Heuristics refer to mental shortcuts or rules of thumb that simplify decision making, while programmed and non-programmed decision making refer to decisions that can be made based on pre-established routines or require a unique approach, respectively.

When Bounded Rational Decision Makers Focus on Alternatives That Are