Showing posts with label Rationality & Bounded Rationality in Decision Making. Show all posts
Showing posts with label Rationality & Bounded Rationality in Decision Making. Show all posts

Sunday, October 19, 2014

Explain The Concepts of Rationality and Bounded Rationality and How They Relate to Decision Making

Decision Making in choice phase
                When choosing,  someone needs to make a phase so there will be a better choice that they get :
          Principle of choice
Based on acceptance of someone that have the power to choose and it based on their solution approach
          Normative Models
        Optimization
Based on the after effect of each alternative
        Rationalization(Reason making system)
          More of good things, less of bad things
          Courses of action are known quantity
          Options ranked from best to worse
        Sub optimization
Decisions made in separate parts of organization without consideration of whole