Which of the following is a true statement about bounded rationality?
A) It is the act of choosing an alternative that meets the minimum standards of acceptability.
B) It is the main cause of the recency syndrome.
C) It occurs when we rely on intuition instead of data.
D) It is our tendency to find the simplest possible solution to a problem.

Question

Quizplus · Accepted Answer

Bounded rationality refers to the cognitive limitations of rational decision-making. It means that often, in complex or uncertain situations, we use simplified decision-making strategies that do not necessarily result in the best outcome. One such strategy is to choose an alternative that meets the minimum standards of acceptability, which is the definition given in option A. The other options are not accurate descriptions of bounded rationality.

Which of the Following Is a True Statement About Bounded