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) incremental decision making
B) active selection
C) intuitive decision making
D) bounded rationality
E) optimal decision making

Question

Quizplus · Accepted Answer

Bounded rationality is the process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity. This approach recognizes that decision makers have limited time, information, and cognitive resources, so they rely on simplified models or heuristics to make judgments and choices. The other options (A, B, C, and E) do not accurately describe this process.

A Process of Making Decisions by Constructing Simplified Models That