What is a consequence of bounded rationality in decision making?

Bounded rationality refers to the limitations of human cognitive capabilities when processing information, which often leads to decision-making that is not fully rational. It recognizes that while individuals aim to make logical and informed decisions, they are constrained by the amount of information they can gather, their cognitive processing abilities, and the finite time available for decision-making.

The choice indicating "possibly flawed choices based on limited information" aligns well with the concept of bounded rationality. When decision-makers operate within the bounds of their limited knowledge and experience, they may not consider all possible alternatives or relevant factors, resulting in decisions that may overlook important insights and lead to suboptimal outcomes. This can happen because they often simplify complex situations to make them manageable, leading to potential errors or biases in their final decisions.

In contrast, the other options present aspects that do not accurately reflect the implications of bounded rationality. Enhanced decision-making speed can sometimes occur, but it often comes at the cost of thoroughness and accuracy. Increased clarity and certainty in decision processes do not align with the reality that bounded rationality typically leads to ambiguity and uncertainty. Lastly, greater reliance on programmed decisions might occur in specific contexts, but it does not inherently stem from the limitations of human rationality in the same way that