B A 350 Lecture Notes - Lecture 12: Cognitive Dissonance, Bounded Rationality, Role Model
1 Nov 2017
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3 factors: routine non routine, recurring non recurring, certainty uncertainty (also predictable non predictable) Unprogrammed decision strategy: nonroutine, nonrecurring, and unpredictable: models of decision making. Rational: from econ theory, assume decision making is completely rational, consistent set of preferences to make decisions, know all possible alternatives, know how successful they are, more like a computer model, difficult to do and rare. Bounded rationality: most of the time, we have constraints make imperfect decisions. Assumptions: elect first alternative that satisfies, recognize world"s view is simple, comfortable at making decisions with exploring all alternatives, make decisions based on rule of thumb or heuristic. Garbage can: analogy, decision based on timing, right people at one place, don"t have time to think about it: factors in decision making. Risk: men take more risks, younger people more, managers take risks when it is calculates, will learn and change by trial and error; japan avoids risk.
