Bounded Rationality concept
Bounded rationality concept believes that
human makes rational decision as per their understanding and human being does
not have absolute powers of understanding. The human being can make the
decision as per his ability to understand the things. Therefore different
people make different decision in the same situation because their level of
understanding differs.
Bounded rationality explains that no
human being can make perfect decision and there are many limitations he has to
face while making decisions. For example he cannot evaluate all the possible
option available for decision making. He cannot predict the future with certainty.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.