ADM 1100 Lecture Notes - Lecture 5: Bounded Rationality, Satisficing, Laziness
9 Jun 2016
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Document Summary
Each model takes a different approach to dealing with uncertainty. Each model emphasizes a different way of combining thinking (formulation) with doing (implementation) (fully) rational model. Decision-maker should strive to be fully informed before acting. Core premise: if i am faced with the same menu of options, i will always make the same choice. You should strive to be fully informed before acting. All consequences and their relative importance can be account for. When information is necessarily imcomplete/imperfect how to determine whether two situations are the same, or different? necessarily incomplete/imperfect - info gathering can only get you so far before you act. Different people will assess the same necessarily incomplete information in different ways. The same person may assess the same information in different ways at different times. What we decide to do depends on the social context in which we receive information and make decisions. Decision-making pathologies to which the model can lead.
