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?
-Amanda has a limited amount of information with which to make her decision.
-Amanda feels pressured by the time constraints on her purchase.
-Amanda does not want to buy a good car.
-Amanda did not make an effort to gather information about new cars.

Answer 1

The answer is:

-Amanda has a limited amount of information with which to make her decision.

-Amanda feels pressured by the time constraints on her purchase.

Bounded rationality refers to a concept that see people's ability to perform of rational thinking is heavily influenced by the time that they have to make the decision.

In the case above, it's stated that Amanda only have the time to read one article before forcing herself to get the car. The limited amount will make Amanda came to the dealerships with lack of information and feel pressured because she is scared that she can't make an appropriate decisions. This will make it more easy for the sales workers on the dealerships to manipulate;ate/influence Amanda's decision.