What is a characteristic of bounded rationality?

Bounded rationality is a concept that acknowledges the limitations of decision-makers when they are faced with complex problems. This characteristic recognizes that individuals do not have access to all possible information and that their ability to process and analyze information is constrained by cognitive limitations, time, and resources. As a result, decision-makers often simplify complex situations to make choices that are "good enough" rather than optimal.

By taking into account these limitations, bounded rationality provides a more realistic framework for understanding how decisions are made in organizations. It emphasizes that instead of striving for perfect solutions, individuals often settle for satisfactory outcomes based on the information they have at hand and the cognitive resources available to them. This perspective reflects the practical realities of real-world decision-making processes, where conditions of uncertainty and incomplete information are common.

The other options do not accurately capture the essence of bounded rationality. Perfect decision-making and ambitious goal-setting are not realistic within the framework of bounded rationality, which focuses on pragmatism in decision-making. Emotional factors may play a role in decision-making, but they do not define bounded rationality since the concept primarily addresses cognitive and situational constraints rather than emotional influences.