ECONOMICS

Detailed explanation-1: -The bounded rationality model of decision making recognizes the limitations of our decision-making processes. According to this model, individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search for alternatives.

Detailed explanation-2: -What is Bounded Rationality? Bounded rationality is a human decision-making process in which we attempt to satisfice, rather than optimize. In other words, we seek a decision that will be good enough, rather than the best possible decision.

Detailed explanation-3: -Intuitive decision making is the way people make decisions naturally, without the use of formal tools and procedures. Some talk about intuition as happening without any thought at all. Like “trusting your gut” or “using the force” in a sixth sense kind of manner.

Detailed explanation-4: -The cons of the rational model The process is sometimes constrained by insufficient information, which creates problems if a manager has to consider, and then evaluate, any alternatives they need to reach a decision. Time limitations can also be an issue.