The Car (Scenario)
Haifa is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she will feel comfortable driving it.
-Haifa's brother has a different view of the repairs. He assumes that the repair person is using the best information available, but there may be other unexpected repairs that might surface and that a higher budget might be more reasonable. He is using___________ .

Question

Quizplus · Accepted Answer

Haifa's brother is using bounded rationality by assuming the repair person has the best information available but acknowledging that unexpected repairs might arise. Bounded rationality refers to the limitations of human decision-making abilities, where individuals make decisions based on the information and options available to them, rather than an exhaustive search for all possible options and information.

The Car (Scenario) Haifa Is a Student, and Her Older Brother Has Loaned