What is the role of learning in decision-making under bounded rationality?

Economics Bounded Rationality Questions



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What is the role of learning in decision-making under bounded rationality?

The role of learning in decision-making under bounded rationality is to improve decision-making over time by acquiring new information, knowledge, and skills. Learning allows individuals to expand their understanding of the decision-making environment, identify patterns and trends, and develop more effective decision-making strategies. It helps individuals adapt to changing circumstances, make better predictions, and reduce decision-making errors. Through learning, individuals can gradually overcome the limitations of bounded rationality and make more informed and rational decisions.