Which of the following is true of bounded rationality?

a. It suggests that decision makers base their decisions on logic with conscious consideration.

b. It suggests that decision makers make decisions after attaining complete information and knowledge.

c. It suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits.

d. It suggests that decision makers need to form an informal alliance of individuals to achieve a common goal.

Question

Gabrielle Sanchez

Business

17 April, 17:51

Which of the following is true of bounded rationality?

a. It suggests that decision makers base their decisions on logic with conscious consideration.

b. It suggests that decision makers make decisions after attaining complete information and knowledge.

c. It suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits.

d. It suggests that decision makers need to form an informal alliance of individuals to achieve a common goal.

+3

Answers (1)

Know the Answer?

Humberto Yoder · Answer 1

Letter c is correct. It suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits.

Explanation:

Limited rationality is a model of decision makers who use their own understanding and rationality of situations to solve complex problems. This happens when decision makers look for solutions based on their own limited thinking, disregarding the entire existing technological aid process, such as data analysis and artificial intelligence, which are relevant aids in minimizing limitations. Limited rationality has the negative aspect of not optimizing the decision making process.