COM 220 Chapter Notes - Chapter 11: Focus Group, Cognitive Bias, Sunk Costs

• School: University of Victoria
• Department: Commerce
• Course: COM 220
• Professor: Saunders Lawrence

Document Summary

Com 220 chapter 11 - decision making: decision making: developing a commitment to some course of action. Involves making a choice around several alternatives. Is a process that involves more than simply the nal choice. Usually involves some sort of commitment of resources (i. e. money, time) Is a process of problem solving: problem: a perceived gap between an exiting state & a desired state. Economic person: the perfect, cool, calculated decision maker: can gather info about problems & solutions without costs & is completely informed, is perfectly logical, economic gain is the criterion for making the decision. Real decision makers are unable to use perfect rationality. Instead, managers are limited to using bounded rationality: bounded rationality: a decision making strategy that relies on limited information & that re ect time constraints & political considerations. Framing: aspects of the presentation of information about a problem that are assumed by the decision maker. Hindsight: the tendency to review the decision-making process to.