What Do We Mean by Bounded Rationality

question 39

Multiple Choice

What do we mean by bounded rationality?

• A) Consumers are inherently irrational and this limits their ability to make effective decisions.
• B) The ability for a consumer to be rational is bounded by the situation in which the consumer finds himself.
• C) Consumers are prevented from acting rationally, as they use past experiences to inform their decisions.
• D) Consumers are limited by time in decision making so consumers cannot always be rational.