A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity is known as ________.
A) optimal decision making
B) intuitive decision making
C) bounded rationality
D) active selection
E) incremental decision making

Question

Quizplus · Accepted Answer

The human mind cannot formulate and solve complex problems with full rationality. Thus, they operate within the confines of bounded rationality. The process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity is known as bounded rationality.

A Process of Making Decisions by Constructing Simplified Models That