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, boundedrational and intuitive decisionmaking models?
a Rational: assumes a full understanding of the problem, sufficient information on alternatives, and a full understanding the implications of the final decision. Boundedrational: 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. Boundedrational: satisficing stopping at the first solution agreed upon by management. Intuitive: using gut instincts.
c Rational: the standard approach. Boundedrational: reducing complexity by using the standard approach. Intuitive: following emotional guidelines.
d Rational: the traditional approach. Boundedrational: expediting the rational approach by stopping at the first viable solution. Intuitive: a combination of both rational and boundedrational approaches.
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