Which of the following statements BEST describes bounded rationality?
A) Decision makers are limited by having incomplete information as well as by their values,unconscious reflexes,skills,and habits.
B) Decision makers have complete information regarding the situation and all possible alternatives.
C) Decision makers will be able to fully anticipate the consequences of each available alternative because these consequences define the boundary.
D) People tend to be rational decision makers,and this fact bounds the creativeness and effectiveness of decisions.
E) Alternative permutations make it imperative for rational decision makers to create a bounded number of evoked alternatives.

Question

Quizplus · Accepted Answer

Bounded rationality is the idea that decision makers are limited in their ability to make fully rational decisions due to factors such as incomplete information, values, unconscious reflexes, skills, and habits. Option A best describes this concept by highlighting these limitations. Options B, C, D, and E either describe decision making without limitations or do not fully capture the concept of bounded rationality.

Which of the Following Statements BEST Describes Bounded Rationality