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Business Decision Making: Irrational Decisions

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Decision Making: Irrational Decisions. Length 6-8 paragraphs
Due: 6/18/2009
Please let me know if you would like to work on this, thank you.
Do a bit of research 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:
1. 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.
2. Explain, in detail, why the decision was once considered "rational" but would now be considered "irrational".
3. 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.

Prepare your response in APA format (including citations, references, abstract, introduction and conclusion). All references must have corresponding citations and all citations must have references.

Objective: The Objective of the Unit 2 DB Assignment will involve the following the Course Outcomes and Grading Criteria with their respective percentages for the Grading Rubric:

? PART 1 - Identify and analyze models of decision making (rational/irrational decision process) via an example (25%)
? PART 2 - Use effective communication techniques to support the example chosen (25%)
? PART 3 - Identify & analyze models of decision making (theories) applicable to the example (30%)
? In-depth peer-to-peer interaction with fellow students (20%)

Instructor Comments:

BE CAREFUL AND READ THE ENTIRE PROJECT INSTRUCTIONS.
Note there are 3 specific parts to this project. Be sure you full address each one in your response.
Make every effort to be as thorough and complete in your response as you can. When completing your response, remember to fully justify any comments or decisions using rationale to support them.
Use "headings" in the body to separate your answer to each question.
Remember...DON'T COMBINE PARTS TO THE PROJECT...ANSWER EACH ONE SEPARATELY!!!

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Solution Summary

The solution provides a discussion of each theory mentioned, except for noncompensatory theory (there was a lack of information on this theory available). Furthermore, it provides information on how to proceed with the assignment. There is also an irrational practice example provided, as well.

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Thank you for posting today. It is my goal to provide ideas, definitions, research help, and instructions on how you, the student, should approach the assignment.

1. and 2. For this we need something that was considered rational, may now may not be so. Consider the practice of bloodletting in medicine (http://en.wikipedia.org/wiki/Bloodletting),which had been used for a very long time but we now know to be completely ridiculous, and even counterproductive. A further, more academic (and better should be used for this project), source is http://www2.library.ucla.edu/specialcollections/biomedicallibrary/12193.cfm . I'm sure some search in your own library will yield more sources.

3. This requires you to select a decision-marking theory from the list. I am going to provide brief definitions here, of each, to ...

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