Question: What are the differences between rational, bounded - rational and intuitive decision - making models? a . Rational: assumes a full understanding of the problem,

What are the differences between rational, bounded-rational and intuitive decision-making models?
a. Rational: assumes a full understanding of the problem, sufficient information on alternatives, and a full understanding the implications of the final decision. Bounded-rational: satisficing - stopping at the best solution available, given time, resources, and other business pressures. Intuitive: using heuristics or shortcuts, developed through experience and time, leading to tools of accumulated judgment.
b. Rational: using reason to come to the final decision. Bounded-rational: satisficing - stopping at the first solution agreed upon by management. Intuitive: using gut instincts.
c. Rational: the standard approach. Bounded-rational: reducing complexity by using the standard approach. Intuitive: following emotional guidelines.
d. Rational: the traditional approach. Bounded-rational: expediting the rational approach by stopping at the first viable solution. Intuitive: a combination of both rational and bounded-rational approaches.
 What are the differences between rational, bounded-rational and intuitive decision-making models?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!