What are the methods that could be used by individuals to decrease risky decision making in favor of logical decision making? [450 words plus 4 references needed to include authors name and year of publication]
What are the methods that could be used by individuals to decrease risky decision making in favor of logical decision making.
- The assumption of rationality indicates that people make choices to maximize something of value. For example, judgment and decision making are used to select from among choices, or to evaluate opportunities (Sternberg, 2006). According to Sternberg, human beings are not "boundlessly rational." In other words, they are rational, but within limits. For example, individuals may use a decision-making strategy termed satisficing (Simon, 1987 as cited in Sternberg, 2006). Generally, according to Sternberg, individuals arrive at conclusion through the process of satisficing. For instance, the person considers an option, one by one, and then selects that option. Once the person has found an option he or she accepts, he or she is satisfied with that option. In this way, as Sternberg (2006) points out, individuals do not consider all options in which to make a rational decision. Instead, they considers the minimum number of options needed that will satisfy their minimum requirements. For example, in choosing a car to purchase, the individual may focus on the price of the car (one aspect). As Sternberg emphasizes, they do not consider other factors such as: ...
The solution provides insight into methods that can be used to decrease risky decision making in favour of logical decision making.