Asked by Veronika Khvan on May 23, 2024

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____ refers to the decision rules that are a part of the bounded rationality model.

A) Heuristics
B) Risk propensity
C) Problem framing
D) Emotional block

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used to speed up the process of finding a satisfactory solution.

Bounded Rationality Model

A concept suggesting that individuals make decisions based on the limited information they have available and within the constraints of their mental capacity.

Emotional Block

Emotional block is a situation or condition where an individual's feelings prevent them from understanding a situation clearly or acting effectively, often hindering problem-solving and decision-making processes.

  • Understand the fundamentals of satisficing and its importance in the process of decision-making within the confines of bounded rationality.
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KS
Kewal Sunil KumarMay 28, 2024
Final Answer :
A
Explanation :
Heuristics are the decision rules used to simplify complex problems that cannot be solved through complete rational analysis. These rules are used to speed up the decision-making process by reducing the number of alternatives to be considered. Heuristics are a part of the bounded rationality model, which recognizes that decision-making is influenced by limitations in time, information, and cognitive ability. Risk propensity, problem framing, and emotional block are other factors that can influence decision-making but are not directly related to decision rules.