Phil has to decide whether to leave his own firm and start his own with two old co-workers, but he only has a limited amount of time to decide. He remembers that he is not good under pressure by recalling a time that he bought an alpaca because it was the last one and he panicked. Sometimes people may not make rational decisions because of bounded rationality, whereby they have to make a judgement in a hurry and don’t have time to fully weight all of the costs and benefits. Phil appears to fall victim to this fairly regularly, as evidenced by his decision to buy an alpaca once.
See more: bounded rationality, choices, cost benefit analysis, irrationality, rationality, tradeoffs
Economics of Modern Family 