Simon's "bounded rationality" primarily deals with limits of what?
Physical endurance
Rational decision-making
Economic growth
Technological innovation
Answer
Rational decision-making is limited by various factors, a concept known as "bounded rationality," first proposed by Herbert Simon. Rationality is often assumed to involve perfect knowledge, unlimited computational power, and consistent preferences. However, in reality, individuals have limited cognitive resources, face constraints such as time and information availability, and might have inconsistent preferences, leading to deviations from perfectly rational decision-making.
The Multifaceted Mind of Herbert A. Simon: An Engaging Quiz on his Remarkable Contributions
More Questions
Herbert A. Simon's Nobel Prize was for his contributions to what theory in economics?
Besides his role in academia, Simon held a title in which other domain?
Which of the below is not an example of Simon's interdisciplinary work?
What did Simon's work on satisficing challenge the notion of?
Herbert A. Simon's theory of bounded rationality suggests decision-makers are constrained by what?
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