Discuss bounded rationality

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Reference no: EM131222193 , Length: 1000 Words

Discuss bounded rationality. In your discussion, explain the term as well as its importance in rational managerial decision-making.

Discuss how bias has blocked your ability to make a rational decision. In your answer, discuss the heuristic that you may have used and the bias associated with that heuristic. What could you have done to overcome the bias generated by the heuristic?

Discuss the concept of satisficing. In your answer, discuss the positive and negative aspects of applying satisficing in decision-making.

Explain the availability, representativeness, and affect heuristics. In your answer, compare the three and discuss the positive and negative aspects of each.

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Bounded rationality derives it basis from political scientist Herbert Simon (Fiori, n.d.). The concept was derived as a mean of helping managers in their effort to make a decision within the organization. Simon believes that the process of making decisions is influenced by non-rational factors, which include prejudices, emotions and other kinds of subjective biases. The procedure of making decisions especially those of business natures requires certain characteristics on the part of the policy-makers.

Reference no: EM131222193

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