Theories of Decision Making

Decision-making theories explore how individuals and groups choose among options. Key theories include: 1. **Rational Choice Theory**: Assumes people make decisions by evaluating all options to maximize benefits and minimize risks. 2. **Bounded Rationality**: Recognizes that people have limitations in knowledge and time, often leading to "satisficing"—choosing a good enough option rather than the perfect one. 3. **Intuitive Decision-Making**: Relies on gut feelings and experiences, often used in fast-paced situations. 4. **The Conflict Theory**: Examines how differing preferences can lead to negotiation or compromise in group decisions. Each theory provides insights into the complexities of human choices.