Decision makers construct simplified models that extract the essential features from problems without capturing all their complexity. That is, they operate within the confines of ________.
A) optimal decision making
B) intuitive decision making
C) bounded rationality
D) rationality
E) common sense

Question

Quizplus · Accepted Answer

The phrase "bounded rationality" refers to the idea that decision makers have limits or constraints ("boundaries") on their ability to process information and make completely rational decisions. This means that they often use simplified models or heuristics to make decisions that do not capture all the complexity of a problem. Option A ("optimal decision making") and Option D ("rationality") both suggest that decision makers are making fully informed, completely rational decisions, which is not always the case. Option B ("intuitive decision making") and Option E ("common sense") do not specifically reference the idea of simplifying complex problems, but instead suggest that decision making is based on instinct or personal experience.

Decision Makers Construct Simplified Models That Extract the Essential Features