Bounded rationality is a function of:

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that people have limitations in their ability to process information and make decisions, leading them to make decisions that are less than optimal. This is often due to the costs of obtaining and processing information, which can be high. Therefore, the best choice is D, as it points to the costs of optimizing behavior as a key factor in bounded rationality. The other options – product homogeneity, strategic interaction, and separation of management from ownership – may be relevant in other contexts, but they are not directly related to the concept of bounded rationality.

Bounded Rationality Is a Function Of