Describe the Concept of Bounded Rationality

question 32

Essay

Describe the concept of bounded rationality.

---

Definitions:

Expectancy Model

A psychological theory stating that an individual's motivation is based on their expected outcome of a specific behavior or action.

Motivational Strength

The intensity of an individual's drive or willingness to pursue or achieve goals.

Potential Reward

A possible benefit or gain that might be obtained as a result of taking a certain risk or engaging in a particular action.

Expectancy Theory

A motivation theory stating that an individual's willingness to exert effort is a function of the expected outcome, the value of that outcome, and the perceived likelihood that effort will lead to desired performance.