MHR 405 Chapter Notes - Chapter 7: Amos Tversky, Daniel Kahneman, Availability Heuristic
3 May 2016
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Document Summary
Rational choice paradigm: the view in decision making that people should (and typically do) use logic and all available information to choose the alternative with the highest value. Subjective expected utility: the probability of satisfaction (utility) resulting from choosing a specific alternative in a decision. Decision making: the process of making choices among alternatives with the intention of moving towards some desired state of affairs. Identify problem or opportunity: choose the best decision process, discover or develop possible choices, select the choice with the highest value. Implement the selected choice: evaluate the selected choice. Problems/opportunities are constructed from ambiguous information, not given to us. Stakeholder-framing: employees, suppliers, customers, and other stakeholders present (or hide) information in ways that makes the decision maker see the situation as a problem, opportunity, or steady sailing. Decisive leadership: how fast you determine that the situation is a problem, opportunity, or nothing worth their attention.
