What is at the core of exchange in the BRIE model?

Answer 1

At the core of exchange in the BRIE model (Bounded Rationality in Economic Exchange) is the concept of bounded rationality, which suggests that individuals make decisions based on limited information and cognitive constraints. This model emphasizes the importance of trust, social norms, and relationships in facilitating exchanges, as participants often rely on heuristics and past experiences rather than fully rational calculations. Additionally, the BRIE model highlights the role of institutional frameworks that shape the environment in which exchanges occur, influencing the behavior of the participants involved.