Chapter 2: Managerial Decision Making Flashcards
1
Q
Bounded Rationality
A
the idea that for complex issues we cannot be completely rational because we cannot fully grasp all the possible alternatives, not can we understand all the implications of every possible alternative
2
Q
Bounded Rationality includes
A
satisficers, limited knowledge
ex: behavior economics
3
Q
Rationality
A
logic and reasoning
4
Q
Rationality includes
A
utility maximizers and perfect knowledge
