The concept of 'Bounded Rationality' associated with Herbert Simon implies that:
A. Individuals are limited in their cognitive capacity and information and therefore satisfice rather than optimise
B. Rationality is unbounded
C. Only perfect information is assumed
D. Individuals always optimise with unlimited computational power
Answer: Option A
Solution (By JKSSB Mock Tests)
Bounded rationality recognises that human decision-makers face cognitive limitations and incomplete information, so they typically seek satisfactory rather than optimal solutions.
No comments yet. Be the first to start the discussion!