Which of the following is described as when decision makers have limits on their ability to assimilate large amounts of information?
A) rational decision-making
B) constrained rationality
C) hyper rationality
D) bounded rationality

Question

Quizplus · Accepted Answer

Bounded rationality refers to the concept that decision makers have limits on their ability to assimilate large amounts of information, so they must simplify the decision-making process by using heuristics or rules of thumb. Rational decision-making assumes that decision makers have unlimited ability to process information, while constrained rationality is a similar concept but with the added constraint of limited resources. Hyper rationality is not a commonly used term in the field of decision making.

Which of the Following Is Described as When Decision Makers