Gretchen,the office manager in a small company,was told by her boss to start shopping for a new office copier,in addition to her many other duties.Although she spent some time shopping for the copier,she was limited by the lack of time,how much she has to spend,and the complexity of choices to select from.This is an example of an individual limited by bounded rationality.

Question

Quizplus · Accepted Answer

Bounded rationality is a concept that suggests that the ability of decision makers to be rational is limited by numerous constraints,such as complexity,time and money,and their cognitive capacity,values,skills,habits,and unconscious reflexes (see Figure 7.2).

Gretchen,the Office Manager in a Small Company,was Told by Her