MGHB02H3 Chapter Notes - Chapter 11: Bounded Rationality, Sunk Costs, Cognitive Bias
Document Summary
Problem a perceived gap between an existing state and a desired state. Short-cut of decision-making process goes directly from problem identification to solution. Some come from experience and only exist in the head while others are more formal. Try to gather more info and be more self-consciously analytical in their approach: entail high risk and stimulate strong political considerations. The compleat decision maker a rational decision-making model: Must be very self-conscious about how they framed problems. Mentally lazy and use whatever info is most readily available resides in memory remember vivid recent events. Confirmation bias the tendency to seek out info that conforms to one"s own definition of or solution to a problem (overconfident in their decision making: too much info. Information overload the reception of more info than is necessary to make effective decisions. Can lead to errors, omissions, delays, and cutting corners reduces quality of decisions.
