Which of the following barriers to rational choices are studied by behavioural economics?
A)bounded rationality
B)bounded willpower
C)bounded self-interest
D)the endowment effect
E)all of the above

Question

Quizplus · Accepted Answer

All of the above choices are studied by behavioural economics as barriers to rational choices. Bounded rationality refers to the limited cognitive abilities of decision-makers. Bounded willpower refers to the difficulty in resisting temptation or maintaining self-control. Bounded self-interest refers to decision-makers not always acting purely in their own self-interest. The endowment effect refers to the tendency for individuals to value something more highly simply because they already possess it. Therefore, choice E is the best answer for this question.

Which of the Following Barriers to Rational Choices Are Studied