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Rational choice theory uses a much more narrow definition of rationality. At its most basic level, behavior is rational if it is reflective and consistent (across time and different choice situations). More specifically, behavior is only considered irrational if it is logically incoherent, i.e. self-contradictory.
Another example is a trader who would make a moderate and risky decision to trade their stock due to time pressure and imperfect information of the market at that time. In organisational context, a CEO cannot make fully rational decisions in an ad-hoc situation because their cognition was overwhelmed by a lot of information in that tense situation.
Attribution (psychology) – Process by which individuals explain causes of behavior and events; Black swan theory – Theory of response to surprise events; Chronostasis – Distortion in the perception of time; Cognitive distortion – Exaggerated or irrational thought pattern; Defence mechanism – Unconscious psychological mechanism
Rationalization encourages irrational or unacceptable behavior, motives, or feelings and often involves ad hoc hypothesizing. This process ranges from fully conscious (e.g. to present an external defense against ridicule from others) to mostly unconscious (e.g. to create a block against internal feelings of guilt or shame).
Decision theory or the theory of rational choice is a branch of probability, economics, and analytic philosophy that uses the tools of expected utility and probability to model how individuals would behave rationally under uncertainty.
One of the main treatments is rational emotive therapy (RET), which is based on the principle that an "activating" emotional event will cause a change in thoughts toward that situation, even if it is an illogical thought. So with this therapy, it is the therapist's job to question and change the irrational thoughts.
Carl Jung developed the theory of cognitive processes in his book Psychological Types, in which he defined only four psychological functions, which can take introverted or extraverted attitudes, as well as a judging (rational) or perceiving (irrational) attitude determined by the primary function (judging if thinking or feeling, and perceiving ...
The difference between the two is that actions are intentional behavior, i.e. they are performed for a purpose and guided by it. In this regard, intentional behavior like driving a car is either rational or irrational while non-intentional behavior like sneezing is outside the domain of rationality. [6] [63] [64]