Answer:
Public goods are better than other goods.
Explanation:
A public good is a product that one person can consume but still it can be available for another person. Another one would not be deprived for the same. This makes public good non-rivalrous. For instance, public park is a public good. If person A is using it, B can also use it at the same time. Services like fire and police are also public goods and are available to all at the same time. Thus, public goods are mostly publicly financed and hence are better.
Private good like a piece of pizza can only be eaten only person 'A' at a given time. Person 'A' can exclude others from eating it unlike a public good.
Answer:
The idea is bounded rationality.
Explanation:
The Bounded Rationality Theory was proposed by Herbert Simon and it states that human cognition is not perfect and is flawed. One's reasoning can have fails which restricts the decision making and eventually coming to an optimal one.
The theory states that a person tends to take irrational decisions since his/her rational thinking is in fact limited by his/her cognitive skills, the available time and the complexity of such problem.
When solving a problem, one can never truly fix it in a completely optimal way since it is impossible to think of all the solutions to the problem.
