Which of the following is NOT an example of a mistake caused by bounded rationality?
A) excessive optimism
B) inaccurate risk assessments
C) framing
D) punishing a low-ball offer

Question

Quizplus · Accepted Answer

Punishing a low-ball offer is not an example of a mistake caused by bounded rationality. Bounded rationality refers to the idea 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. Punishing a low-ball offer is more related to negotiation tactics and emotional responses rather than the cognitive limitations described by bounded rationality.

Which of the Following Is NOT an Example of a Mistake