MO 302 Study Guide - Midterm Guide: Bachelor Of Business Administration, Self-Justification, Rational Agent

• School: U of M
• Department: Management and Organizations
• Course: MO 302
• Professor: Sandeland

Document Summary

The rational actor: is autonomous; thinks for self, sees things objectively, and maximizes his/her self-interest seeks having in a world of measurement. Homo economicus (the rational actor of economic theory) aim to maximize utility perfect information rational decision making. Defined problem, criteria known and weighed, alternatives known, decision on criteria. Homo humanus (the human person in real life) aim to satisfice or sacrifice for others imperfect information. Let others take over us in (primitive) (example: praying, seeing a psychic) Take in only what we can, narrowed by values and views. We think intuitively (example: *blink* fist impressions, bad at knowing why) We think by using heuristics (our own experiences) Representativeness ( business or follow passion after bba) Anchoring or adjusting (comparing general salary to what you should be making) We think by feeling (sinek: how great leaders inspire action) Know how we fall short of the rational actor ideal. Should economic rationality be our goal when dealing with people.