Rationality and Bounded Rationality in Decision Making
Rationality and Bounded Rationality in Decision Making

Summary/Abstract: Every day people are faced with decisions because of the various issues that are inevitable in day-to-day life. In the same breath, during the choices, there is numerous information on a given phenomenon; information that cannot be comprehended in full and used in making the decisions. This paper seeks to look at the limitations of the market and how they have influences on the different choices that humans make. Moreover, the first part of the paper will address behaviour science and the concept of bounded rationality. The next phase will offer a theoretical glimpse and by so doing compare rationality theory and the critique offered through bounded rationality. Based on the above understanding the paper will then go into detail and look at different concepts related to the subject matters of this paper. The concepts will be decision making in times of uncertainty and risk, the responses of humans when faced with different alternatives and what shapes the choices and how they are shaped.

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