BU288 Lecture 14: Decision making
Document Summary
Decision making is the process of developing a commitment to some course of action. Problem is a perceived gap between an existing state and a desired state. Ill structured problems: ill structured problem is a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. The compleat decision maker a rational decision-making model: Perfect versus bounded rationality: perfect rationality is a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain. Problem identification and framing: perceptual defence, problem defined in terms of functional speciality, problem defined in terms of solution, problem diagnosed in term of symptoms, information search. Information search: too little information, confirmation bias is the tendency to seek out information that conforms to one"s own definition of or solution to a problem, too much information: East accurate perception of gaps that constitute problems. Probability of each known only criterion is economic gain.
