Microeconomics rational and irrational decisions

Provide examples and references from your personal life for each of these three scenarios:

You acted rationally. Very briefly explain your choice.
You confronted bounded rationality. How did you resolve this situation?
You had to choose between self-regarding and other-regarding preferences. Briefly explain.

Solution Preview

Basically, making a rational choice while in the field of business is a very crucial action. As a business man, there is a certain time that I actually wanted to put up a firm but I had a variety of choices on what kind of business I would invest in. Now, I had to sit down and use the available information, potential costs that I could incur as well as the benefits I would obtain from the decision I would make. After all that I was able to determine the best preference. I chose putting up a construction firm instead of cloth and shoe firm since I found that construction was on demand and it would generate more profits and in a very short time.

(380 words)