Identify an assumption of the bounded rationality model of decision making.
A)Managers make decisions by rules of thumb, or heuristics.
B)Managers are aware of all the possible alternatives.
C)Managers recognize that their conception of the world is complex.
D)Managers choose the best alternative after thorough analysis.

Question

Quizplus · Accepted Answer

The bounded rationality model of decision making suggests that individuals make decisions using heuristics or rules of thumb due to cognitive limitations and incomplete information, rather than through a thorough analysis of all possible alternatives.

Identify an Assumption of the Bounded Rationality Model of Decision