Question

What are three generally excepted constructs of decision making each of us employs to make determinations.

Answer 1

Answer:

A. rational decision making, bounded rationality, intuition

Explanation:

In making decisions, individuals basically make use of three constructs:

Rational decision making model: This enables the decision maker consider all options available given that he has all information required and chooses the best option based on this, while being unbiased.

bounded rationality

This involves simplified models that only collect necessary/essential features from a problem without capturing all their complexity

intuitive decision making

This is an unconscious way of making decision which is based on experience

Answer 2

Answer:

(A) Rational decision making, bounded rationality, and intuition

Explanation:

Rational decision making is a multi-step process for making  choices between alternatives. The process ofrational decision making favors logic, objectivity, and analysis over subjectivity and insight.

Bounded rationality is the idea that in decision-making,rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Intuition is the ability to have a grasp on a situation or information without the need for reasoning. The opposite ofintuitive decision making is rational decision making, which is when individuals use analytics, facts and a step-by-step process to come to a decision.

Rational decision making, bounded rationality, and intuition plays an important role in making decisions.