Behavioral decision theory models accept the notion of bounded rationality and suggest that people act only in terms of what they perceive about a given situation.

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Behavioral decision theory models recognize that individuals have limitations in their ability to process information and make optimal decisions, which is known as bounded rationality. Therefore, they suggest that individuals make decisions based on their perceptions of the situation rather than complete and objective information.

Behavioral Decision Theory Models Accept the Notion of Bounded Rationality