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Akimi4 [234]
3 years ago
5

An important implication of prospect theory is that the way people subjectively frame an outcome affects their decision. Narrow

framing is when people evaluate new gambles in isolation, ignoring other relevant risks. This is an example of __________.
English
1 answer:
Sliva [168]3 years ago
6 0

Answer:

bounded rationality

Explanation:

Bounded rationality refers to the understanding that when individuals make decisions, their coherence and good sense is restricted by several factors. In that respect, the outcome of their decision is limited by the information they possess, by their mental processes of acquiring knowledge and understanding, and by the time limitation for decision-making.

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