Which of the following describes the idea that perfectly rational decisions are infeasible at times due to constraints found in information processing?
A) Limited capacity
B) Satisficing rationality
C) Bounded rationality
D) Search regret
E) Information overload

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that humans are not capable of making perfectly rational decisions at all times due to limitations in information processing capacity. This means that people are forced to make decisions based on incomplete information or limited cognitive abilities, which leads to suboptimal choices. Limited capacity (A) and information overload (E) are related concepts, but they do not fully capture the idea of bounded rationality. Satisficing rationality (B) and search regret (D) are not directly related to the concept of bounded rationality.

Which of the Following Describes the Idea That Perfectly Rational