Economics Bounded Rationality Questions
The role of intuition in bounded rationality is to provide individuals with quick and automatic decision-making processes based on their past experiences and knowledge. Intuition helps individuals make decisions efficiently when faced with complex and uncertain situations, allowing them to rely on heuristics or mental shortcuts. However, intuition can also lead to biases and errors in decision-making, as it is influenced by personal beliefs and emotions. Therefore, while intuition plays a significant role in bounded rationality, it should be used cautiously and complemented with deliberate and analytical thinking to achieve better decision outcomes.