Economics Bounded Rationality Questions
Intuition plays a significant role in decision-making under bounded rationality. When individuals are faced with complex and uncertain situations, they often rely on their intuition or gut feelings to make quick and efficient decisions. Intuition allows individuals to draw upon their past experiences, knowledge, and subconscious processing to make judgments and choices without fully analyzing all available information. It helps individuals to simplify decision-making by providing a shortcut or heuristic approach. However, it is important to note that intuition can be influenced by biases and may not always lead to optimal outcomes.