Economics Bounded Rationality Questions
The role of emotions in bounded rationality is that they can influence decision-making and limit rationality. Emotions can affect how individuals perceive and process information, leading to biased judgments and decisions. Emotions can also impact the trade-offs individuals make when faced with limited cognitive resources, causing them to prioritize certain goals or outcomes over others. Overall, emotions play a significant role in shaping the bounds of rationality by influencing the decision-making process.