Review the information in the assigned text for Unit 2 research.
Using the Internet on the differences between rational and irrational decision making. These terms aren't static and are relatively fluid (in other words our interpretation of what is rational or irrational can change with circumstances or time).
For this project consider the fact that at one point in US history the decision to own slaves was considered rational and informed. Today we would consider the decision to own slaves "irrational".
For this project identify one other example of a decision (past or present) that was once considered "rational" but that is now reviewed as "irrational". Do not analyze a personal decision but one from a published or academic source.
Explain, in detail, why the decision was once considered "rational" but would now be considered "irrational".
Identify the decision theory from our learning in Unit 2 you believe was used in the original decision making within your example. You may select from expected utility theory, prospect theory, regret theory, pseudocertainty, satisficing, or noncompensatory strategies (all theories learned in Unit 2). Be sure to fully support "why" the theory you selected was present. Simply naming a theory won't be enough...you need to support your answer.
The response addresses the queries posted in 699 Words, APA
Rational and Irrational Decision Making
Decision Making can be defined as a cognitive process to take decision for a particular issue. It is an outcome of the selection of the best and suitable variable, among various strategic alternatives. Rational and Irrational Decision Making depends upon the behavior of a human being. It may be possible that a decision taken by an individual is rational for him, but for others it is not. A decision of a human being relies upon his consciousness and unconsciousness. According to the study of Baron held in 1994, a decision can said to be an irrational decision only in the situation, where the decision makers are unreasonable and non-interested towards the consequences and cost of their decisions (Baron, 1994).
Example of a Rational Decision which now is considered as an Irrational Decision
The Rational and Irrational Decision Making can be understood with the help of an example of Iraq War. It is very easy to indulge in War, but it is really very difficult to get out of it! It is also known as occupation of Iraq, started on March 20, 2003. Invasion of Iraq was led by the ...
This solution discusses rational and irrational decision making, addresses a major decision over the last decade that is now considered an irrational decision, and how it relates to decision theory. This solution is 699 words with four APA references.
Rational and Irrational Decision Making
Please see attached document.
Below are a set of decision making models.
DECISION MAKING MODELS
? Satisficing: When we satisfice, we choose an alternative that yields the most satisfaction for our greatest needs even though the alternative might not be ideal or optimal.
? Prospect Theory: Prospect theory suggests that our decisions are influenced depending on how the alternatives are presented. If, for example, it is suggested that a particular action will create a loss, we are likely make a decision based on loss aversion.
? Certainty Effect: The certainty effect identifies our preference to eliminate loss rather than lessen it. If, given a choice between two solutions wherein one might help and the second solution would definitely help, we would likely opt for certainty.
? Pseudocertainty: Pseudocertainty suggests that if given an action that appears to eliminate risk, rather than simply reducing it, we are likely to opt for that action.
? Regret Theory: Regret theory rests on two fundamental assumptions; first, that many people experience regret, and second, that in making decisions under uncertainty, they try to anticipate and take into account that sensation.
? Multi-Attribute Choice: When we are faced with a variety of decisions and each possible choice is filled with numerous attractive and unattractive characteristics, we are being frustrated by multi-attribute choice.
? Noncompensatory Strategies: When people are confronted with complex choices among a number of alternatives, they typically use noncompensatory strategies. In contrast to compensatory strategies, these strategies do not allow trade-offs.
1. What do you think those different concepts imply about how people make decisions?
2. Do the decisions we make always need to be rational?
3. Under what circumstances are we (decision makers) likely to make irrational choices?
For this project consider the fact that at one point in US history the decision to own slaves was considered rational and informed. Today we would consider the decision to own slaves "irrational". For this project:
1. Identify one other example of a decision (past or present) that was once considered "rational" but that is now reviewed as "irrational".
2. Explain, in detail, why the decision was once considered "rational" but would now be considered "irrational".
3. Identify the decision theory (from the models above) you believe was used in the original decision making within your example. Be sure to fully support "why" the theory you selected was present. Simply naming a theory won't be enough...you need to support your answer.View Full Posting Details