The __________ decision model acknowledges human limitations to decision-making and addresses the issues of bounded rationality, intuition, satisficing, and escalation of commitment.
A) rational-economic
B) rational-alternative
C) situational
D) behavioral
E) full-involvement

Question

Quizplus · Accepted Answer

The behavioral decision model recognizes the limitations of human decision-making, incorporating concepts such as bounded rationality, intuition, satisficing (settling for a satisfactory option rather than the optimal one), and escalation of commitment (continuing a chosen course of action even when it has been shown to be problematic). These elements are key in understanding how decisions are made in real-world scenarios, acknowledging that individuals do not always make perfectly rational choices due to limitations in information, time, and cognitive processing capabilities.

The __________ Decision Model Acknowledges Human Limitations to Decision-Making and Addresses