COMM 222 Lecture Notes - Lecture 11: Decision-Making, Bounded Rationality, Regional Policy Of The European Union

• School: Concordia University
• Department: Commerce
• Course: COMM 222
• Professor: Gordon Leonard

Document Summary

Learning objective 1: define decision making and differentiate well-structured and ill-structured problems. Decision making is the process of developing a commitment to some course of action. It involves to make a choice, it is a process and involve a commitment of resources. It might be describe as the process of problem solving. A problem exists when a gap is perceived between some existing state and some desired state. Well-structured problems: a problem for which the existing state is clear, the desired state is clear, and how to get from one state to another is fairly obvious. (simple, repetitive and familiar, a program is standardized to solve them) Ill-structured problems: a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. (unique and unusual, complex, arouse conflict, can"t be solved by programmed decision) Learning objective 2: compare and contrast perfectly rational decision making with decision making under bounded rationality.