MGMT 3000 Chapter Notes - Chapter 8: Bounded Rationality, Satisficing, Risk-Seeking

• School: University of Georgia
• Department: Management
• Course: MGMT 3000
• Professor: charleswaynelyons

Document Summary

Decision making: the process of identifying issues and making choices from alternative courses of action. Expected utility: when confronted with a choice, people try to make the best possible decision; one that maximizes their expected utility. Factors that influence decisions: misleading information, limited ability to process information, limited time, conflicting preferences. Bounded rationality: a set of boundaries or constraints that tend to complicate the rational decision-making process: by bounding what they need to consider, attempt to accelerate the process. Satisficing: the act of choosing a solution that is good enough. Conditions of certainty: individuals have all of the information they need to make the best possible decision (rare) Ambiguity: situations that are characterized by uncertainty and risk. Assess the frequency, probability, or likely cause of an event by the degree to which instances or occurrences of that event are readily available in memory: representativeness: