as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the concept of bounded rationality.
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bounded rationality is a concept which states that when making decisions, humans are constrained by the limited information they have available, their cognitive abilities, and the amount of time they have to make a decision. this means that people are not able to be completely rational in their decision making and instead rely on heuristics, or mental shortcuts, to help them make decisions quickly and efficiently.
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