COB 202 Chapter Notes - Chapter 6.2: Bounded Rationality, Satisficing, Abraham Maslow
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6. 2: identifying problems & opportunities: 110 116. Goal: explain why people differ from the rational choice paradigm when identifying problems/ opportunities, evaluating/ choosing alternatives, and evaluating decision outcomes (cid:862)whe(cid:374) the o(cid:374)ly tool you have is a ha(cid:373)(cid:373)er, all pro(cid:271)le(cid:373)s (cid:271)egi(cid:374) to rese(cid:373)(cid:271)le (cid:374)ails(cid:863) abraham maslow. Bounded rationality: the view that people are bounded in their decision making capabilities, including access to limited information, limited information processing, and tendency toward satisfying rather than maximizing when making choices. Be aware of the problem identification biases. Have an aversion to complacency (practice divine discontent) Implicit favorite: a preferred alternative the decision maker uses repeatedly as a comparison with other choices. Anchoring & adjustment heuristic: a natural tendency for people to be influenced by an initial anchor point such that they do not sufficiently move away from that point as new info in provided.
