Decision making Essay Example | Topics and Well Written Essays - 500 words - 1

Decision making - Essay Example Consequently, modern day decision makers are biased, especially given the deeply-rooted perceptions of success and failure that have been inherited from ancestors. According to Cialdini (2013), bias in human decisions is not just a cause of deficiencies that results in poor decisions. On the contrary, bias is associated design features and not flaws, and this is crucial in understanding consumer behaviours as a result of their decisions. The three major decision making models are rational decision making, descriptive, and natural settings decision models. Each set of models explain the extent of human decision subject to different conditions. For instance, rational decision models such as multivariate utility theory and Bayesian inference models involved breaking down problems into small elements such that uncertainties, choices, and consequences were explicitly provided. In descriptive models, humans are perceived as incapable of making rational decisions due to deviations in terms of heuristics and biases. The explanation of irrationality in descriptive models is elaborated by bounded rationality. Today, decision making within everyday setti ngs focuses on serving the attainment of a goal and not learning the choice. ­Ã‚ ­ Decision making in natural settings focuses on perceiving aspects within the environment restricted by space and time; understanding the meaning of such elements; and forecasting their future status (Polic, 2009, p. 79). This means that at any given time, decision makers are neither fully aware of all possible alternatives for their decision nor the possible outcomes tied to each option, and are never infinitely sensitive to unique distinctions that distinguish one option from the other or the extent of rationality each decision carries. Conventional originates from traditions and customs. A rational decision-making process involves making decisions that result in optimal benefits and operate under the