BUSINESS REPORT

Business Report

Business Report

Bounded Rationality in Decision Making

All concepts, methodologies and assumptions that the researchers presented are based on the premise that the decision maker is a rational. According to this concept, the decision maker is an individual with unlimited capabilities of information and computing capacity, with full strategic behavior and optimizes utility when making a decision (Joseph, 2009, p. 12). While there is validity of this concept for most economists and the foundations of modern economics support it, some researchers have claimed the inability of the classical theory of rationality to describe the human behaviour satisfactorily in a factual situation ...