Asked by Krupa Patel on Jun 11, 2024
Verified
Which of the following describes decision making with limited information and bounded rationality?
A) classical decision model
B) certain environment
C) optimizing decision
D) behavioural decision model
E) unstructured environment
Behavioural Decision Model
A concept in psychology that examines the decision-making processes individuals use, including biases, judgments, and social influences.
Limited Information
A condition in decision-making processes where all necessary data or details are not available to the decision-maker.
- Understand the traditional and behavioral approaches to making decisions.
- Acquire knowledge on the notion of bounded rationality and its influence on decision-making outcomes.
Verified Answer
AH
Alexa HaightJun 16, 2024
Final Answer :
D
Explanation :
The behavioural decision model is based on the idea that decision-making is influenced by cognitive biases, emotions, and other psychological factors. It recognizes that decision makers often have limited information and must make decisions with bounded rationality, meaning they cannot consider all possible options and must rely on heuristics or rules of thumb to make decisions. The other options do not pertain to decision making with limited information and bounded rationality.
Learning Objectives
- Understand the traditional and behavioral approaches to making decisions.
- Acquire knowledge on the notion of bounded rationality and its influence on decision-making outcomes.
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