BU288 Chapter Notes - Chapter 11: Sunk Costs, Bounded Rationality, Satisficing
Document Summary
Process of developing a commitment to some course of action. Process that involves more than just final choice. Problem perceived gap between an existing state and desired state. The existing state is clear, desired state is clear and how to get from one state to the other is fairly obvious. Program standardized way of solving a problem. Some programs are from experience, some are more formal. Programs only as good as decision making process. Problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. Must be solved with non programmed decision making. A decision strategy that is completely informed, perfectly logical and oriented toward economic gain: gather info on problems without cost. Bounded rationality decision strategy that relies on limited information and that reflects time constraints and political considerations. Framing aspects of presentation of information about a problem that are assumed by decision makers.
