Question

Amanda needs to buy a new car for work. She has one day to find a car and was able to read only one article about new cars before she went to the dealership. Which of the following options describe how bounded rationality is at work in this situation?
A) Amanda has a limited amount of information with which to make her decision.
B) Amanda feels pressured by the time constraints on her purchase.
C) Amanda does not want to buy a good car.
D) Amanda did not make an effort to gather information about new cars.

Answer 1

Answer:A) Amanda has a limited amount of information with which to make her decision.

B) Amanda feels pressured by the time constraints on her purchase.

Explanation: Bounded rationality is the described as the limitation in information and knowledge, amount of time ,mind thinking etc while in making a decision that describes the rationality of an individual.

According to the case mentioned in the question about the  bounded rationality of Amanda while buying car are limited information about car and she is also low on time(one day) that describes limitation of time .

Other options are incorrect because she wants good car and she made the effort for searching information about car but she had limited time.Thus, the correct options are option(A) and (B).