Bounded rationality refers to
A) decisions being based on a certain starting point.
B) simple and straightforward rational decisions.
C) decisions made easily without any restrictions.
D) making decisions within a set of constraints.

Question

Quizplus · Accepted Answer

Bounded rationality refers to making decisions within a set of constraints, such as limited information or cognitive limitations. This means that decision-making is not always simple and straightforward, as in option B, and decisions are not made easily without any restrictions, as in option C. Option A is partially correct, as decisions may be influenced by a starting point, but this is only one aspect of bounded rationality.

Bounded Rationality Refers to