Bounded rationality is assumed in
A)the behavioral model.
B)the rational model.
C)the irrational model.
D)decision making under certainty.
E)None of these.

Question

Quizplus · Accepted Answer

Bounded rationality is a central concept in the behavioral model of decision making, which recognizes that individuals' decision-making abilities are limited by cognitive and social factors. The rational model, on the other hand, assumes that individuals are completely rational and objective in their decision making, which is not always the case. The irrational model assumes that individuals are completely irrational in their decision making, which is also not accurate. Decision making under certainty does not involve bounded rationality since there is no uncertainty involved.

Bounded Rationality Is Assumed in