COB 202 Study Guide - Midterm Guide: Scenario Planning, Goal Setting, Subjective Expected Utility
Document Summary
Rational choice paradigm: the view in decision making that people should and typically do use logic and all available information to choose the alternative with the highest value. Decision making: the conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs. Subjective expected utility (seu): the probability (expectancy) of satisfaction (utility) resulting from choosing a specific alternative in a decision. Identify problem or opportunity: choose the best decision process, discover or develop possible choices, select the choice with the highest value. Implement the selected choice: evaluate the selected choice, restart process. Bounded rationality: the view that people are bounded in their decision making capabilities, including access to limited information, limited information processing, & tendency towards satisficing rather than maximizing when making choices. Implicit favorite: a preferred alternative that the decision maker uses repeated as a comparison with other choices.
