The idea that there are limits to optimal decision making because there are limits to people's limited cognitive abilities, skills, information, or time is called:
A) bounded rationality.
B) bounded willpower.
C) risk aversion.
D) the income effect.

Question

Quizplus · Accepted Answer

Bounded rationality is the concept that in decision-making, the rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

The Idea That There Are Limits to Optimal Decision Making