A consumer who followed the assumption of bounded rationality would be most like

Question

A consumer who followed the assumption of bounded rationality would be most likely to apply the preceding rule of thumb rather than seeking independent information on product quality. In purchasing which kinds of goods?

a. Major purchases such as automobiles

b. Good that people buy frequently and can easily be inspected such as clothing

c. Goods like household cleaners that people buy infrequently and constitute a small part of the consumer's budget and cannot easily be inspected or tested before purchase

Explanation / Answer

The behavioral economics study the effect of human psychology into traditional economic model. According to behavioral economics the traditional theory sometimes fails to explain the behavior of economic agents. In bounded rationality the consumer make decision according to limited information and time available to them. They generally comes to a general solution rather than rational optimum one.

Therefore, the correct option is

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