Explore the second part of a lecture on bounded rationality from MIT's Industrial Organization I course. Delve into rule-of-thumb consumer behavior, computational costs, and models of advertising's impact on purchasing decisions. Gain insights from instructor Glenn Ellison as he builds upon concepts from the previous lecture, offering a deeper understanding of how limited rationality influences economic decision-making and market dynamics.
Bounded Rationality: Rule-of-Thumb Consumers and Computational Costs - Lecture 21