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Among the Most Powerful Institutions for Supporting Good Incentives Are

question 233

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Among the most powerful institutions for supporting good incentives are:


Definitions:

Bounded Rationality

A theory that suggests that there are limits to how rational a decision maker can actually be.

Heuristics

Shortcuts in decision making that save mental activity.

Decision Making

The cognitive process of selecting a course of action from multiple alternatives, typically aimed at achieving a specific goal or solving a problem.

Rationality

A logical, step-by-step approach to decision making, with a thorough analysis of alternatives and their consequences.

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