To explain:
Why the assumption of bounded rationality suggest that people might use rule of thumb to guide their decision making instead if considering every possible choice available to them?
Concept Introduction:
Bounded Rationality: The concept of bounded rationality says that people are mostly but not completely rational, Bounded rationality also assumes that people as rational but that is limited by the information they have and their ability to quickly process the available information.
Rules of thumb: It is a key implication of bounded rationality because of the people cannot examine the every possible in the economy so people can look forward to other alternatives.
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