Bounded rationality implies what about decision making?

Bounded rationality refers to the concept that decision makers are limited in their ability to process information and consider all available options due to various constraints. These constraints can include time limitations, cognitive biases, lack of information, and the complexity of the situation. As a result, individuals often seek satisfactory solutions rather than the optimal ones. This means they typically rely on heuristics or rules of thumb to simplify the decision-making process. Understanding bounded rationality highlights the realistic limitations that individuals face in making decisions, thus emphasizing that human behavior is not always perfectly rational.

The other options do not reflect the essence of bounded rationality. For instance, considering every alternative would imply an exhaustive, rational decision-making process that contradicts the notion of bounded rationality. Additionally, stating that emotions do not influence decisions fails to recognize the role of psychological factors, which can actually impact judgment and choices. Finally, the idea that all decisions are made rationally and logically misrepresents how real-world decision making often occurs, given the constraints people face.