Which of the following is an assumption of the bounded rationality model?
A)Managers are aware of all the possible alternatives.
B)Managers have a consistent system of preferences, which is used to choose the best alternative.
C)Managers can calculate the probability of success for each alternative.
D)Managers develop shortcuts, called heuristics, to make decisions in order to save mental activity.

Question

Quizplus · Accepted Answer

The bounded rationality model assumes that individuals make decisions using heuristics to simplify the decision-making process, acknowledging that they cannot process all information or consider every possible alternative due to cognitive limitations.

Which of the Following Is an Assumption of the Bounded