Human cognition, human behaviour

Question 1

Bounded rationality

Answer 1

Human decision-making is not always perfect since it is limited by cognitive constraints, incomplete information, and the tendency to make satisfying choices rather than fully optimizing outcomes.

Ex: a policymaker will probably use more simplified models to make decisions rather than using more complicated ones which may take more time to understand.

Question 2

Opportunism

Answer 2

Mainly taking advantage of a situation for personal gain.

Ex: a politician changing opinions after being elected just so he could get votes before the election.

Question 3

Farsightedness

Answer 3

the ability to sacrifice short-term benefits for long-term success (opposite of opportunism)