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Bounded Rationality and Decision-Making

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Discuss Simon's concept of Bounded Rationality and its effectiveness as a decision-making process.

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Simons' conceptual framework on Bounded Rationality is placated upon limiting what sorts of utility functions there might be. When making decisions, the information that a person has influences the rationality of their decision-making, and therefore, Simon proposes that for effective decision-making, decision-makers must recognize the costs of gathering and processing information. The concept is ...

Solution Summary

Discussion of Simon's concepts in reference to decision making.