BU288 Chapter Notes - Chapter 11: Bounded Rationality, Decision-Making, Rationality
Document Summary
Decision-making is the process of developing a commitment to some course of action. Three things are noteworthy about this definition: decision making involves making a choice among several action alternatives, decision making is a process; we want to know how this decision was reached. A problem exists when a gap is perceived between some existing state and some desired state. 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. Problems are simple and solutions arouse little controversy because these problems are repetitive and familiar. Program: a standardized way of solving a problem. A problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. Ill-structured problems are generally unique, they are unusual and have not been encountered before complex and involve a high degree of uncertainty.
