GMS 200 Lecture Notes - Lecture 1: Steven Rattner, Heuristics In Judgment And Decision-Making, Bounded Rationality

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Ricardo Reyes

Document Summary

Gm"s average market share dropped from 48. 3% in 1960 to 18% in july 2012. Up until 2008 gm was heading towards bankruptcy until the us government bailed them out with a . 2b loan. In the last 52 weeks (end time sept 11 7:57 pm with stock price of . 35), gm stocks traded at a low of . 67 and high of . 71. Management issues shared by steven rattner (centrally involved in the restructuring of. It is a highly competitive and uncertain global business environment: managers still have to get their companies ahead by making the best use of the information, money, and people. How managers make decisions; or ought to make decisions. A: the classical decision model describes decision-making with complete information and rationality. In the classical theory managers acts in a perfect world (rationality) and make optimizing decisions; meaning choosing the absolute best among alternatives. The behavioral decision model describes decision- making with limited information and bounded rationality.