Consuela has decided that it is time for a new car. To begin the buying process, Consuela carefully reviews the local newspaper for any dealer sales and then looks at the "for sale by owner" section of the newspaper. She then narrows the search to a few local dealerships that she hopes will be willing to negotiate on the price. This is an example of _____________.

Bounded rationality - it is referred to the idea during the decision making that illustrate that decision of any individual depend upon rationality which further depends upon information, experience and amount of time in which an individual has to make a decision.

In simple terms, people's decision-making processes are bounded by factors like available information, experience, computational ability and restricted time.

tallinn tallinn · Answer 2 · 2020-02-17T06:54:23+01:00

Answer:

Bounded rationality

Explanation:

Bounded rationality refers to the rational decision making ability of an individual which is bound or restricted by the quantum of information at an individual's disposal.

An individual before deciding to buy a product, tries and avails as much information about the product as possible. Now, the rationality with respect to making such purchases is influenced or limited by the total information available.

In the given case, the buyer decided to buy a new car. She accumulated all information she could and then further narrowed it down to a few dealers. This represents a case of bounded rationality.