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Rationality (Bounded Rationality (Escalation of commitment (Commitment to…
Rationality
Bounded Rationality
Decisions made with perimeters of the simplified model that captures the essential features of a problem
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Real life example- McDonalds have limited staff for a shift, put staff on most important roles even though other roles are not being fulfilled. Good enough decision.
Rationality
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Assumes...
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Single, well defined goal
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Preferences are clear, constant and stable
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Intuition
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Making decision - real life experience relating to opening a new physical store from a small business, decided the particular suburb would be successful based on gut feeling and previous experience of others