MGFC10H3 Lecture Notes - Lecture 11: Bounded Rationality, Information Overload, Confirmation Bias
Document Summary
Decision making: the process of developing a commitment to some course of action. Decision making is comprised of a choice, a process, and resources. 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 is fairly obvious. Program: a standardized way of solving a problem. These include things such as rules, routines, standard operating procedures, or rules of thumb. Ill-structured problem: a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. This includes lack of precise information, or being unaware. These are problems that are unusual and may not have been encountered before. They are complex and have a high degree of uncertainty. Perfect rationality: a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain.
