Question

In a decision-making setting, if the manager has to contend with limits on the amount of information he or she can consider, this can lead to a poor decision due to __________.

Answer 1

The answer is bounded rationality.

Step-by-step explanation:

It is thought that bounded rationality occurs when rationality is limited due to some decisions made by individuals. Other aspects are involved in bounded rationality and they include the tractability of the decision problem, the cognitive limitations of the mind, as well as the time available to make the decision. Thus, decision-makers act like satisficers because they seek a satisfactory solution instead of an optimal one.

Herbert A. Simon was the person who established bounded rationality as a way for the mathematical modeling concerning decision-making, which is usually utilized in economics, political science, and other disciplines.