Podcast
Questions and Answers
What is meant by 'bounded rationality' in decision-making?
What is meant by 'bounded rationality' in decision-making?
- Making decisions based solely on emotions.
- Considering only the outcomes that benefit oneself.
- Making decisions by evaluating every possible option.
- A simplified process of making decisions by interpreting essential problem features. (correct)
Which of the following steps is NOT part of the Rational Decision-Making Model?
Which of the following steps is NOT part of the Rational Decision-Making Model?
- Identify the decision criteria.
- Define the problem.
- Evaluate the alternatives.
- Trust your intuition. (correct)
In the context of ethical decision-making, what impacts an individual's perception of their freedom to act?
In the context of ethical decision-making, what impacts an individual's perception of their freedom to act?
- Duties towards people affected by their actions. (correct)
- Peer pressure and social norms.
- The potential financial outcome.
- Personal beliefs and values.
What characterizes a rational decision-making model?
What characterizes a rational decision-making model?
What defines an intractable problem?
What defines an intractable problem?
What is bounded rationality primarily a response to?
What is bounded rationality primarily a response to?
What does the concept of 'satisficing' refer to in decision-making?
What does the concept of 'satisficing' refer to in decision-making?
Which scenario best illustrates an intractable problem?
Which scenario best illustrates an intractable problem?
Why might a simplified approach to decision-making be more sensible at times?
Why might a simplified approach to decision-making be more sensible at times?
What challenge does bounded rationality present in ethical decision-making?
What challenge does bounded rationality present in ethical decision-making?
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Study Notes
Rational Decision-Making and Bounded Rationality
- Rational decision-making involves making consistent, value-maximizing choices based on all available information.
- Bounded rationality recognizes limitations in our ability to process information, leading to a simplified problem-solving approach.
- Decision-makers often perceive only essential features of complex problems, ignoring the full complexity involved.
Challenges with Rational Decision-Making
- Gathering extensive information and analyzing multiple criteria can be time-consuming and costly, often impractical.
- Complex problems may not yield optimal solutions, as they exceed the capacity of rational decision-making frameworks.
- Intractable problems can evolve or become irrelevant while decision-making processes are still underway, diminishing the value of the time spent.
Satisficing
- Due to bounded rationality, individuals often satisfice, seeking solutions that are adequate rather than optimal.
- Acceptable, "good enough" solutions can sometimes be more practical than exhaustive rational analyses.
Ethical Decision-Making Considerations
- Bounded rationality can impact ethical decisions, introducing systematic errors in judgment.
- Perceptions of freedom and rights in decision-making are influenced by the responsibilities to those affected by our choices (e.g., the dilemma of taking the last doughnut in a communal setting).
Steps in the Rational Decision-Making Model
- Steps involve defining the problem, identifying decision criteria, allocating weights, developing alternatives, evaluating them, and selecting the best one.
- Each step requires rigorous analysis and systematic organization of thoughts and information, which may not always be feasible.
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