Multifactorial effects on bounded rational decision-making

Abstract

Abstract Conventional models of decision-making are predicated upon the notion of rational deliberation. However, empirical evidence has increasingly highlighted the pervasive role of bounded rationality in shaping decisional outcomes. The manifestation of bounded rationality is evident through a spectrum of cognitive biases and heuristics, including but not limited to anchoring, availability, the decoy effect, herd behavior, and the nuanced dynamics of reward and punishment, as well as the implications of weighting and framing effects. This prospective study is dedicated to a comprehensive exploration of such multiple factors together with their impacts to the architecture and functionality of decision-making processes, and their further research potentials as well.