The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as:
A) satisficing.
B) bounded rationality.
C) classical model of decision making.
D) normative approach.
E) scientific approach.

Question

Quizplus · Accepted Answer

Bounded rationality is the concept that people have limited information processing capabilities and tend to make decisions based on a limited amount of information they can comprehend. Satisficing is a related concept which suggests that people choose the first option that meets their minimum criteria for an acceptable solution, rather than weighing all available options. Classical model of decision making, normative approach, and scientific approach are all different models and approaches to decision making, but they do not specifically address the concept of limited information processing capabilities.

The Concept That People Have the Time and Cognitive Ability