MHR 405 Chapter Notes - Chapter 182 - 194: Subjective Expected Utility, Availability Heuristic, Representativeness Heuristic
3 Mar 2015
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Rational choice paradigm of decision making: rational choice paradigm, the view in decision making that people should and typically do use logic and all available info to choose alternative with the higher value. Rational choice decision making process rational choice paradigm assumes that decision makers follow the systematic process. They have been resolved in the past, so the optimal solution has already been identified and documented. Non-programmed decisions require all steps in the decision model because the problems are new, complex, or ill-defined. 4 - rational choice decision process is to choose the alternative with the highest subjective expected utility: calls for all possible information about all possible alternatives and their outcomes. Rational choice paradigm assumes this can be accomplished with ease. 5 - implement the selected alternative: rational choice experts have little to say about this step because they assume implementation occurs without any problems.
