The concept of bounded rationality suggests that we are likely to:
A) pick the alternative that minimizes value.
B) evaluate all alternatives simultaneously.
C) use accurate information to evaluate alternatives.
D) develop an exhaustive list of alternatives to consider as solutions.
E) choose the first acceptable alternative.

Question

Quizplus · Accepted Answer

Bounded rationality suggests that when facing complex decision-making situations, we are limited in our ability to process all available information and consider all possible alternatives. Instead, we tend to simplify and choose the first alternative that meets our minimum requirements or satisfies our goals. This is known as satisficing, and it is a common strategy for coping with bounded rationality. Therefore, the best answer is E (choose the first acceptable alternative).

The Concept of Bounded Rationality Suggests That We Are Likely