The bounded rationality model of decision making suggests that
A) we compute the probability and utility of each option when we make decisions.
B) we use heuristics to arrive at satisfactory decisions.
C) we use algorithms to make the best possible decisions.
D) the decisions we make are often irrational.

Question

Quizplus · Accepted Answer

The bounded rationality model of decision making suggests that due to limitations in our cognitive abilities and available information, we often use heuristics to arrive at satisfactory decisions that are "good enough" rather than applying an algorithm to make the best possible decision. Therefore, the best choice is B.

The Bounded Rationality Model of Decision Making Suggests That