Bounded rationality is criticized because it is based on
A)simplified models that lack complexity.
B)institutional memory.
C)too tight a structure.
D)the outcome of highest utility.
E)a knowledge model that is too complex.

Question

Quizplus · Accepted Answer

Bounded rationality assumes that humans have limited cognitive abilities and instead use simplified models to make decisions. Critics argue that these models lack the complexity to accurately capture the full context of a decision, leading to suboptimal outcomes.

Bounded Rationality Is Criticized Because It Is Based on