INTL 1160 Lecture Notes - Lecture 8: Future Weapons, Gunboat Diplomacy, Currency Union

• School: Northeastern University
• Department: International Affairs
• Course: INTL 1160
• Professor: Ioannis Livannis

Document Summary

According to the rational actor model, a rational decision making process is used by a state. Decision making procedures guided by careful definition of situations, weighing of goals, consideration of all alternatives, and selection of the options most likely to achieve the highest goals. Bounded rationality the idea that when individuals make decisions, their rationality is limited by the available information, the tractability of the decision problem, the cognitive limitations of their minds, and the time available to make the decision. Mathematical model of strategic interaction where outcomes are determined not only (cid:271)y a si(cid:374)gle a(cid:272)tor"s prefere(cid:374)(cid:272)es (cid:271)ut also (cid:271)y the (cid:272)hoi(cid:272)es of all a(cid:272)tors i(cid:374)(cid:448)ol(cid:448)ed. A concept referring to the growing need for national policy makers to make decisions that will meet both domestic and foreign goals. A behavioral economic theory that describes the way people choose between probabilistic alternatives that involverisk, where the probabilities of outcomes are known.