Client A recently moved his account to LCAM. The client found LCAM by reviewing a list of managers with first-quartile investment results located within a 100-mile radius of his home. He then met with five of those managers before making a decision about which manager to retain.
Is this satisfice or bounded rationality? What is the difference between satisfice and bounded rationality?
Satisfice. Here he is cpnliding his search based on 100 miles distance and 5 managers with 01st wuartile result.
Another way to look at it is what is the qs. asked ?
BR is trait and Satisfice is demonstration. According to BR Human Beings are inherently lazy and have cognitive and intellectual limitation. So optimality is a far cry as it is impossible to guess or gather the pre pondernce of all the information available.
Satisfice is the measurable limit he draws.