MGHD27H3 Study Guide - Confirmation Bias, Sunk Costs, Bounded Rationality
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Well-structured problems: well-structured problem: a problem for which the existing state is clear, the desired state is clear, and how to get from one state to the other is fairly obvious. Problem is repetitive, familiar, simple, and arouses little controversy: program (rules, routines, standard operating procedures, or rules of thumb): a standardized way of solving a (well-structured) problem. Shortens the decision- making process by enabling the decision maker to go directly from problem identification to solution. Ill-structured problem: a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. Therefore, decision makers are likely to gather more information and be more self-consciously analytical in their approach: can entail high risk and stimulate strong political considerations. www. notesolution. com, the rational decision-making process: The complete decision maker a rational decision-making model. Constitute assumptions and shortcuts that can improve decision-making efficiency, but often lead to errors in judgment.
