A basic assumption of the bounded rationality model of decision making is ____.
A) decision alternatives can be completely evaluated in terms of their potential value
B) decision alternatives can be objectively rank ordered in terms of appropriateness
C) preferences for alternatives seldom change as new information is acquired
D) people do not evaluate all possible decision alternatives

Question

Quizplus · Accepted Answer

The bounded rationality model assumes that people do not evaluate all possible decision alternatives due to limitations in cognitive ability, time, and resources. Therefore, option D is the correct choice. Option A is incorrect as the model assumes that decision alternatives cannot be completely evaluated. Option B is also incorrect as the model assumes that decision alternatives cannot be objectively ranked. Option C is incorrect as the model recognizes that preferences can change as new information is acquired.

A Basic Assumption of the Bounded Rationality Model of Decision