Economics Bounded Rationality Questions
The role of learning in bounded rationality is to improve decision-making by acquiring knowledge and experience over time. As individuals with limited cognitive abilities, we are boundedly rational and cannot process all available information to make optimal decisions. However, through learning, we can gradually expand our knowledge and develop heuristics or rules of thumb to simplify decision-making processes. Learning allows us to recognize patterns, understand cause-and-effect relationships, and make more informed choices within the constraints of our bounded rationality.