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Multiple Choice
Satisficing and bounded rationality are associated with the __________ model of decision-making.
A
heuristic
B
bounded rationality
C
rational choice
D
elimination by aspects
Verified step by step guidance
1
Understand the key terms: 'Satisficing' refers to choosing an option that meets an acceptable threshold rather than the optimal one, and 'bounded rationality' refers to the idea that decision-making is limited by cognitive constraints and available information.
Recognize that these concepts challenge the traditional 'rational choice' model, which assumes individuals make fully rational decisions by evaluating all possible options.
Identify that the 'bounded rationality' model incorporates satisficing and acknowledges cognitive limitations, making it a more realistic description of human decision-making.
Review the options given: heuristic, bounded rationality, rational choice, and elimination by aspects, and consider which model explicitly involves satisficing and cognitive limits.
Conclude that the correct model associated with satisficing and bounded rationality is the 'bounded rationality' model of decision-making.