What form of decision theory assumes that decision makers are rational beings who always seek to strictly maximize economic goals?
A) the theory of bounded rationality
B) normative decision theory
C) satisficing decision theory
D) human optimal decision theory

Question

Quizplus · Accepted Answer

Normative decision theory assumes that decision makers are rational beings who always seek to strictly maximize economic goals, and prescribes the best course of action for decision makers to achieve their economic goals. Option A, the theory of bounded rationality, suggests that decision makers are limited by their cognitive abilities and resources, and therefore adopt shortcuts to make decisions. Option C, satisficing decision theory, suggests that decision makers choose a satisfactory solution that meets their criteria, but may not necessarily be the optimal solution. Option D, human optimal decision theory, is not a recognized theory in the field of decision making.

What Form of Decision Theory Assumes That Decision Makers Are