BUAD309 Lecture Notes - Lecture 2: Homophily, Bounded Rationality

• School: University of Delaware
• Department: Business Administration
• Course: BUAD309
• Professor: Kyle Emich

Document Summary

Bounded rationality- this allows people to make a decision from a small set of info (very quickly) Concept that decision makers (irrespective of their level of intelligence) have to work under three constraints: Only limited, often reliable, info is available regarding possible alternatives and their consequences. Human mind has only limited capacity to evaluate and process the info that is available. Only a limited amount of time is available to make a decision. The two major forms of workforce diversity. Surface level diversity- age, race, sex, disabilities, sexual orientation*(* bc you can"t really see it) Deep level diversity- background, knowledge, skills, abilities(intellectual, physical, teamwork) Social categorization theory- when your smaller in group does better you feel better and when your outer group does worse you feel better. You are more likely to communicate with people on your team . People maintain self esteem through social comparisons with others. To do this, they categorize others based off salient characteristics.