Which of the following describes the idea that perfectly rational decisions are not always feasible due to constraints found in information processing?
A) limited capacity
B) limited rationality
C) bounded rationality
D) bounded capacity
E) information overload

Question

Quizplus · Accepted Answer

Bounded rationality is the idea that decision-making is limited by three constraints: cognitive limitations, imperfect information, and time constraints. This means that people cannot always make decisions that are perfectly rational due to the limitations of their cognition and the availability of information. Limited capacity, bounded capacity, and information overload all relate to the limitations of cognitive processing and are particular aspects of bounded rationality. Limited rationality is a broader term that encompasses the idea that human decision-making is inherently flawed and not fully rational, but this term does not specifically address the constraints on decision-making posed by information processing. Therefore, the best choice is C) bounded rationality.

Which of the Following Describes the Idea That Perfectly Rational