Question

Who is associated with the concept of 'Bounded Rationality'?

• A. Charles E. Lindblom
• B. Herbert Simon
• C. Thomas R. Dye
• D. Yehezkel Dror

Hint:

Remember the keyword "Satisficing".
It is a combination of "satisfy" and "suffice", a term central to Simon's theory of bounded rationality.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Classical decision-making assumed perfect rationality. Bounded rationality challenges this.
Step 2: Detailed Explanation:
Herbert Simon proposed the concept of Bounded Rationality. He argued that humans cannot be perfectly rational because of cognitive limitations, time constraints, and incomplete information. Instead, they "satisfice" (seek a solution that is good enough).
Step 3: Final Answer:
Herbert Simon developed the concept of Bounded Rationality.