Cognitive decision making is also known as "bounded rationality" because it recognizes
A) that there is no irrationality in cognitive decision making.
B) that cognition is more important than emotion in decision-making processes.
C) that there are internal and external boundaries that limit what a decision maker knows.
D) the importance of the bureaucracy in the decision making process.

Question

Cognitive decision making is also known as "bounded rationality" because it recognizes
A) that there is no irrationality in cognitive decision making.
B) that cognition is more important than emotion in decision-making processes.
C) that there are internal and external boundaries that limit what a decision maker knows.
D) the importance of the bureaucracy in the decision­ making process.

Quizplus · Accepted Answer

Cognitive decision making acknowledges that decision makers have limited information and cognitive capacity, which places boundaries on their rationality. These boundaries can include internal cognitive limitations (e.g. biased thinking) and external limitations (e.g. time or resource constraints). This concept is important because it highlights the importance of understanding and overcoming these limitations in decision-making processes. The other answer choices are not accurate statements about bounded rationality.

Cognitive Decision Making Is Also Known as "Bounded Rationality" Because