Editing Utility maximization problem (section)

== Bounded rationality ==
for further information see: [[Bounded rationality]]

In practice, a consumer may not always pick an optimal bundle. For example, it may require too much thought or too much time. [[Bounded rationality]] is a theory that explains this behaviour. Examples of alternatives to utility maximisation due to [[bounded rationality]] are; [[satisficing]], [[Heuristics in judgment and decision-making|elimination by aspects]] and the mental accounting heuristic.

* The [[satisficing]] heuristic is when a consumer defines an aspiration level and looks until they find an option that satisfies this, they will deem this option good enough and stop looking.<ref>{{Cite book|last=Wheeler|first=Gregory|title=bounded rationality|publisher=Stanford Encyclopedia of Philosophy|year=2018}}</ref> 
* [[Heuristics in judgment and decision-making|Elimination by aspects]] is defining a level for each aspect of a product they want and eliminating all other options that do not meet this requirement e.g. price under $100, colour etc. until there is only one product left which is assumed to be the product the consumer will choose.<ref>{{Cite web|date=2018|title=Elimination-By-Aspects Model|url=https://www.monash.edu/business/marketing/marketing-dictionary/e/elimination-by-aspects-model|access-date=20 April 2021|website=Monash University}}</ref> 
* The [[mental accounting]] heuristic: In this strategy it is seen that people often assign subjective values to their money depending on their preferences for different things. A person will develop mental accounts for different expenses, allocate their budget within these, then try to maximise their utility within each account.<ref>{{Cite web|date=2021|title=Why do we think less about some purchases than others?|url=https://thedecisionlab.com/biases/mental-accounting/|access-date=20 April 2021|website=The decision lab}}</ref>