Normative Models

Normative models are theoretical frameworks used to determine the ideal or optimal ways to make decisions or behave. They specify how individuals should act to achieve the best outcomes based on logical, consistent principles, often considering rationality and fairness. Unlike descriptive models, which describe how people actually behave, normative models provide guidelines or standards for ideal decision-making under given circumstances. They are used in economics, philosophy, and decision science to understand and promote optimal choices.