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Abbie Vodicka
on Nov 29, 2024

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One of the reasons managers face limits to their rationality is that they:

A) are aware of all the possible alternatives.
B) must make decisions under risk and time pressure.
C) have a consistent system of preferences.
D) calculate the probability of success for each alternative.

Limits to Rationality

The boundaries within which human reasoning and decision-making effectiveness are constrained, often due to a lack of information or cognitive capabilities.

Risk

The possibility of facing harm or loss when engaging in an activity or making a decision.

Time Pressure

The stress and sensation of urgency induced by the belief that there is not enough time to complete a task or meet a deadline.

  • Identify the presuppositions that form the basis for the rational and bounded rationality approaches to decision making.
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HC
Hunter ChristieDec 04, 2024
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