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Bounded Rationality, risk perception

Bounded Rationality, risk perception - be perceived as...

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Bounded Rationality acknoledges that there are human cognitive limitations in our ability to make decisions. All humans percieve risk in a different way but there are primarily two types of of humans; satisficers and optimizers. If a person is a satisficer then they prefer to have everything consistent with what they know they like. These people are limited in their ability to percieve risk because anything that is out side of their comfort zone could
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Unformatted text preview: be perceived as risky. On the other hand an optimizer prefers to try things that are new and unknown. This type of person is limited to how accurately they can perceive risk because their curiousness blocks their ability to perceive something new or foreign as risky. In both cases emotional factors can limit a person's ability to properly perceive risk....
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