Consumer rationality Study guides, Class notes & Summaries

CEBS GBA Exam 2 Questions & Answers 2023/2024 What is the basic assumption underlying concept of a free market and how is it challenged by the theory of "bounded rationality?" (Mod 1.1) - ANSWER-Assumption that rational customers will make informed decisions about value, quality and price, while producers who meet consumer's demands will be rewarded with market share and profit. However this is challenged by the consumer's "bounded rationality" - rational consumer is only functional u...

CEBS GBA2 Terms and Definitions Exam Questions and Answers Bounded Rationality - Answer-When the consumer is functional only up to a certain point after which his/her choices are constrained or bound by limed knowledge and understanding of the available choices. Free Market Basic Assumption - Answer-Rational consumers will make informed decisions about value, quality, and price Moral Hazzard - Answer-Consumer will spend someone else's money different than their own Transparency on co...

CEBS GBA2 Terms and Definitions Exam Questions and Answers Bounded Rationality - Answer-When the consumer is functional only up to a certain point after which his/her choices are constrained or bound by limed knowledge and understanding of the available choices. Free Market Basic Assumption - Answer-Rational consumers will make informed decisions about value, quality, and price Moral Hazzard - Answer-Consumer will spend someone else's money different than their own Transparency on co...

Driving forces - a requirement for transformational change a. Globalization b. Rapid change in technology c. Changes on consumer demands d. Changes in supply of raw materials e. Shifts in asymmetric or symmetric information f. Competition Targets of the transformational changes - what needs to be affected if the transformational change is to occur: a. Tasks b. People c. Culture d.Technology e. Structures The business process reengineering approach is best described as operational Fayo...

Optimizing and Satisfying - ANSWER-Goals of the organization Transaction Costs - ANSWER-The Costs of doing business. The determinants of transaction costs are frequency, specificity, uncertainty, limited rationality, and opportunistic behavior. Also can apply to every day interactions Cost of uncertainty - ANSWER- Bounded Rationality - ANSWER- Incomplete Contracts - ANSWER- MECE - ANSWER-Mutually Exclusive Collectively Exhaustive From McKinsey Mutually Exclusive - ANSWER-Is ...

CEBS GBA Exam 2 Question with complete solution 2023/2024What is the basic assumption underlying concept of a free market and how is it challenged by the theory of "bounded rationality?" (Mod 1.1) - correct answer Assumption that rational customers will make informed decisions about value, quality and price, while producers who meet consumer's demands will be rewarded with market share and profit. However this is challenged by the consumer's "bounded rationality" - rational consumer is...

What is the basic assumption underlying concept of a free market and how is it challenged by the theory of "bounded rationality?" (Mod 1.1) - Assumption that rational customers will make informed decisions about value, quality and price, while producers who meet consumer's demands will be rewarded with market share and profit. However this is challenged by the consumer's "bounded rationality" - rational consumer is only functional up to a certain point because choices are constrained ...

ARE 112 midterm exam questions & answers 2023/2024 bounded rationality - ANSWER-A set of BOUNDARIES or CONSTRAINTS that tend to complicate the rational decision-making process transaction costs - ANSWER-the expenses of negotiating and executing a deal (the cost of completing a sale/purchase) cost of uncertainty - ANSWER-chance that price of an asset will change; unstable stocks or bonds incomplete contracts - ANSWER-When a consumer or seller is not able to maximize the benefits of a...

CEBS GBA2 Terms and Definitions Exam Questions and Answers Bounded Rationality - Answer-When the consumer is functional only up to a certain point after which his/her choices are constrained or bound by limed knowledge and understanding of the available choices. Free Market Basic Assumption - Answer-Rational consumers will make informed decisions about value, quality, and price Moral Hazzard - Answer-Consumer will spend someone else's money different than their own Transparency on cos...

CEBS GBA2 Terms and Definitions Exam Questions and Answers Bounded Rationality - Answer-When the consumer is functional only up to a certain point after which his/her choices are constrained or bound by limed knowledge and understanding of the available choices. Free Market Basic Assumption - Answer-Rational consumers will make informed decisions about value, quality, and price Moral Hazzard - Answer-Consumer will spend someone else's money different than their own Transparency on c...