Question

The concept of bounded rationality suggests that we are likely to

Answer 1

Answer: The concept of bounded rationality suggests that we are likely to:

• Not have the ability or resources to process all available information and alternatives to make an optimal decision.

Explanation:

Herbert Simon's limited rationality theory states that people make decisions partially irrational because of our cognitive, information and time constraints.

It is very difficult to make completely rational decisions because our resources to process information are limited, especially when the problems are complex, as usually happens in everyday life.

The limited rationality model states that people use heuristics when it comes to finding solutions. Heuristics are defined as general and simple rules that we use to solve problems; Although they may be useful in many cases, in others they produce cognitive biases, that is, systematic deviations in reasoning.