When Sophie makes decisions,she does so with incomplete information.Sophie is making
A)irrational decisions.
B)rational decisions.
C)sharp decisions.
D)intuitive decisions.
E)bounded rationality decisions.

Question

Quizplus · Accepted Answer

Sophie is making bounded rationality decisions because she is making decisions under conditions of incomplete information. This means that she does not have access to all the relevant information and has limited cognitive abilities to process and analyze the information that she does have. Bounded rationality is a concept in decision-making theory that recognizes the limitations of human decision-makers and the need to make decisions based on heuristics, rules of thumb, and simplified models of reality.

When Sophie Makes Decisions,she Does So with Incomplete Information