Question

Susanne, the CEO of a national IT manufacturer, was approached by Simple Phones, a new company that is marketing a new type of phone, to partner with the company on a project. The results of the partnership are uncertain because the company (Simple Phones) and its technology are new. Susanne is uncertain what to do because she is limited by numerous constraints, such as the uncertainty and complexity of the technology, the management success of Simple Phones, and time (because other companies are interested in the partnership). Susanne is experiencing ____________.

Answer 1

Answer: Susanne is experiencing bounded rationality

Explanation: While taking a decision individuals take various factors into consideration like amount of time and information they have, limitations of mind etc. Bounded rationality states that rationale of individual while taking decisions gets affected by such factors. Just in this case,Susanne is not confident about decision making because she does not have enough level of information.