The rational-economic model of decision-making better reflects how decisions are actually made in business organizations than does the behavioral model.

Question

Quizplus · Accepted Answer

The behavioral model is considered more reflective of actual decision-making in business organizations because it accounts for the limited rationality of individuals, the influence of social and emotional factors, and the often unpredictable nature of human behavior, unlike the rational-economic model which assumes perfectly rational decision-making based on complete information.

The Rational-Economic Model of Decision-Making Better Reflects How Decisions Are