MGHB02H3 Chapter Notes - Chapter 11: Bounded Rationality, Confirmation Bias, Rationality
Document Summary
Decision making- the process of developing a commitment to some course of action. Choice- making a choice among several action alternatives. Process- what was the process involved in making that decision. Resources- what resources were used or will be used. Problem- a perceived gap between an existing state and a desired state. 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 if fairly obvious. Program- a standardized way of solving a problem. Ill-structured problems- problems for which the existing and desired states are unclear and the method of getting to the desired state is unknown. These types of problems are unique, unusual, and have not been encountered before, they tend to be complex and require a high degree of uncertainty. Perfect rationality- a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain.
