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Why does the assumption of bounded rationality suggest that people might use rules of thumb to...

Why does the assumption of bounded rationality suggest that people might use rules of thumb to guide their decision making instead of considering every possible choice available to them.

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Bounded rationality is the believ that when individuals make decisions, their rationality is limited by the confines of the decision problem, the thought limitations of their minds, and the time available to make the decision. It is these constraints as regards time and space and also the abilities of the individual that allow them to only consider particular alternatives and not the entire set. It is a constrained optimization issue. This means that only particular sets are considered not the entire space.

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