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September 3, 2022

Explain how the theory of Bounded Rationality extends upon this theory

General Questions

Psychology COGNITION

Question-

The Economic Rationality theory of decision-making has an assumption that humans are economical/rational. Explain how the theory of Bounded Rationality extends upon this theory [3 points]. The theory of Bounded Rationality also claims that the environment, aspiration level, and satisficing can help explain decision making. Explain what is meant by ‘satisficing’ in this theory [2

points].

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