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Questions and Answers
What is the standard economic model based on?
What is the standard economic model based on?
- Assumption of cognitive bias
- Assumption of bounded rationality
- Assumption of rational and selfish behavior (correct)
- Assumption of irrational and social preferences
What is 'Homo-economicus' in the standard economic model?
What is 'Homo-economicus' in the standard economic model?
- An actor who is rational and selfish (correct)
- An actor who is cognitively biased
- An actor who uses simple heuristics
- An actor who has bounded rationality
What does 'bounded rationality' take into account?
What does 'bounded rationality' take into account?
- Irrational decision-making
- Social preferences
- Limited computational capabilities (correct)
- Unlimited computational capabilities
What do heuristics represent in decision-making?
What do heuristics represent in decision-making?
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What does cognitive bias result from?
What does cognitive bias result from?
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