Asked by Kevin Simpson on May 06, 2024
Verified
A classical decision model differs from a behaviour decision model as the classical model
A) assumes that people act with only partial knowledge about the available action alternatives and their consequences.
B) describes decision making with limited information and alternatives.
C) recognizes cognitive limitations to our human information-processing capabilities.
D) describes how many decisions get made in the ambiguous and fast-paced problem situations.
E) assumes that the choice of preferred course of action is made by a decision maker who is fully informed about all possible alternatives.
Classical Decision Model
A theory suggesting decisions are made with rationality, where all alternatives and outcomes are considered and the best choice is made to maximize utility.
Behaviour Decision Model
A theory that explains how individuals make decisions based on the acknowledgment of available alternatives, possible outcomes, and the implications of their choices.
Cognitive Limitations
Refers to the inherent restrictions in human cognitive capacity, affecting memory, attention, and the ability to process information.
- Acquire knowledge of classical and behavioral decision-making frameworks.
- Gain an understanding of the theory of bounded rationality and how it affects the decision-making process.
Verified Answer
Learning Objectives
- Acquire knowledge of classical and behavioral decision-making frameworks.
- Gain an understanding of the theory of bounded rationality and how it affects the decision-making process.
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