Decision makers operate within the confines of _________.They construct simplified models that extract the essential features from problems without capturing all their complexity.
A)bounded rationality
B)intuitive decision making
C)optimal decision making
D)biases

Question

Quizplus · Accepted Answer

Bounded rationality refers to the limitations that decision makers have in fully processing and analyzing all available information. As a result, they often rely on simplified models that only consider the most important factors, but may not capture all the nuances of the problem. Options B, C, and D refer to different decision making approaches and biases, but do not address the specific limitations on decision making that bounded rationality describes.

Decision Makers Operate Within the Confines of _________