If Sean thinks that the choice between going to Olive Garden or Red Lobster is simply too confusing,a behavioural economist will explain that Sean is showing
A)the endowment effect.
B)bounded rationality.
C)bounded self-interest.
D)bounded willpower.
E)irrational behaviour.

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that individuals have a limited capacity to process information and make decisions. In this case, Sean may be overwhelmed by the decision between Olive Garden or Red Lobster, and may not have the cognitive capacity to effectively weigh the pros and cons of each option. Therefore, he is exhibiting bounded rationality. As for the best choice, it ultimately depends on Sean's preferences and circumstances.

If Sean Thinks That the Choice Between Going to Olive