Practice question · Multiple choice
Simon called stopping at the first acceptable option satisficing and treated it as intelligent rather than lazy. What makes it intelligent?
Hints
- Ask what it costs to evaluate the twentieth candidate, and what it is likely to add.
- The rational model assumes something is free. What?
Show the answer
D. Search is costly, so the optimal amount of searching is finite
Why
Evaluating every alternative has a price in time and forgone opportunity, so exhaustive search is itself irrational past some point, bounded rationality is a claim about limits, not about laziness. Naming it earned Simon the 1978 Nobel and reframed decision theory around what deciding costs.
Practise Decision Making
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