When decision makers construct simplified models that extract the essential features from a problem without capturing all the complexities of a problem, they are acting under which of the following?
A)heuristics
B)unbounded rationality
C)uncertainty
D)bounded rationality

Question

Quizplus · Accepted Answer

When decision makers construct simplified models to extract essential features from a problem without capturing all its complexities, they are acting under bounded rationality. This concept acknowledges that individuals work under constraints of information, time, and cognitive capacity, and thus cannot analyze every possible option or outcome in complex situations.

When Decision Makers Construct Simplified Models That Extract the Essential