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The mythological Judgement of Paris required selecting from three incomparable alternatives (the goddesses shown).. 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.
Relevant alternatives theory (RAT) is an epistemological theory of knowledge, according to which to know some proposition p one must be able to rule out all the relevant alternatives to p. Introduction
Decision rule: Infer that the alternative with the positive cue value (1) has the higher criterion value. The validity v i of a cue i is defined as the proportion of correct decisions c i : v i = c i / t i
Rational choice modeling refers to the use of decision theory (the theory of rational choice) as a set of guidelines to help understand economic and social behavior. [1] [2] The theory tries to approximate, predict, or mathematically model human behavior by analyzing the behavior of a rational actor facing the same costs and benefits.
Although a negotiator's alternative options should, in theory, be straightforward to evaluate, the effort to understand which alternative represents a party's BATNA is often not invested. Options need to be actual and actionable to be of value, however, without the investment of time, options will frequently be included that fail on one of ...
In business ethics, Ethical decision-making is the study of the process of making decisions that engender trust, and thus indicate responsibility, fairness and caring to an individual. To be ethical, one has to demonstrate respect, and responsibility. [ 1 ]
The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance. Choice-supportive bias is potentially related to the aspect of cognitive dissonance explored by Jack Brehm (1956) as postdecisional dissonance. Within the context of cognitive dissonance, choice-supportive bias would be seen as reducing the ...
Regret theory models choice under uncertainty taking into account the effect of anticipated regret. Subsequently, several other authors improved upon it. [4] It incorporates a regret term in the utility function which depends negatively on the realized outcome and positively on the best alternative outcome given the uncertainty resolution. This ...