scholarly journals Bounded Rational Decision-Making from Elementary Computations That Reduce Uncertainty

Entropy ◽  
2019 ◽  
Vol 21 (4) ◽  
pp. 375 ◽  
Author(s):  
Sebastian Gottwald ◽  
Daniel Braun
Keyword(s):  
Decision Making ◽  
Probability Distributions ◽  
Fundamental Principle ◽  
Limited Resources ◽  
Rational Decision Making ◽  
Elementary Computation ◽  
Decision Making Processes ◽  
Resource Cost ◽  
Computational Resources ◽  
Generalized Entropies

In its most basic form, decision-making can be viewed as a computational process that progressively eliminates alternatives, thereby reducing uncertainty. Such processes are generally costly, meaning that the amount of uncertainty that can be reduced is limited by the amount of available computational resources. Here, we introduce the notion of elementary computation based on a fundamental principle for probability transfers that reduce uncertainty. Elementary computations can be considered as the inverse of Pigou–Dalton transfers applied to probability distributions, closely related to the concepts of majorization, T-transforms, and generalized entropies that induce a preorder on the space of probability distributions. Consequently, we can define resource cost functions that are order-preserving and therefore monotonic with respect to the uncertainty reduction. This leads to a comprehensive notion of decision-making processes with limited resources. Along the way, we prove several new results on majorization theory, as well as on entropy and divergence measures.

scholarly journals An analysis of systemic thinking in decision-making processes in the municipalities within the province of KwaZulu-Natal

2015 ◽  
Vol 4 (4) ◽  
pp. 531-547
Author(s):  
Mbuyiseni Goodlife Ntuli ◽  
Lawrence Mpela Lekhanya
Keyword(s):  
Decision Making ◽  
Process Model ◽  
Business Environment ◽  
Rational Decision ◽  
Systemic Thinking ◽  
Rational Decision Making ◽  
Theoretical Perspectives ◽  
Kwazulu Natal ◽  
Decision Making Processes ◽  
Decision Making Model

This paper advocates the adoption of systemic thinking in decision-making processes in municipalities. Most importantly, in this epoch of managing in complex and thought-provoking business environment, decision making is one of the most important skills required by any manager to remain effective. The success of a municipality or any business hinges on how well decisions are taken and implemented. In this paper, I intend to scrutinize decision making processes at strategic management levels in the municipalities within the province of KwaZulu-Natal. In doing that, a mixed method approach of qualitative and quantitative techniques was adopted in gathering data from sixty-one municipalities within the province of KwaZulu-Natal. This was done in order to substantiate theoretical perspectives from different erudite scholars on the discourse of systemic thinking in decision making processes. This notion of systemic thinking is coined upon the universally used rational decision making process model. Thus, the conceptualization of rational decision-making model was also considered in this paper, the possibility of decision failure, the complexity of the municipality, and systemic thinking as the recommended option of dealing with complexity was explored. The results indicates that the theory that underpins the adoption of systemic thinking in dealing with complexity today’s business environment is relevant.

Evaluation and the Administrator: How Decisions are Made

1974 ◽  
Vol 156 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Nancy L. Roser
Keyword(s):  
Decision Making ◽  
Theoretical Model ◽  
Real Life ◽  
Reading Program ◽  
Reading Programs ◽  
Rational Decision ◽  
Job Descriptions ◽  
Rational Decision Making ◽  
Decision Making Processes ◽  
Actual Decision

The investigator describes how principals, supervisors, and central office personnel made decisions in public school reading programs. The study compares the actual decision-making processes with a theoretical model of rational decision making. Typical decisions for administering and supervising a school reading program were obtained from job descriptions and from literature in reading education. Test subjects identified their respective decisions. Through interviews, these administrators and supervisors described the processes by which their identified decisions had been made and compared the descriptions with a representative rational model of decision-making in order to determine how real life decision-making processes approximated a theoretical model. Regardless of staff position, there appeared to be no difference in group ability to identify respective administrative decisions. Analysis of the actual decision-making processes employed by administrators indicated an incomplete awareness of a rational decision-making prescription. Past experience and intuition, rather than attempts to identify alternative actions and to weigh these for relative merit, were the basis of the greatest number of decisions.

scholarly journals A theory of children's decisional privacy

Legal Studies ◽  
2021 ◽  
pp. 1-24
Author(s):  
Georgina Dimopoulos
Keyword(s):  
Decision Making ◽  
Decision Makers ◽  
Best Interests ◽  
Individual Autonomy ◽  
Privacy Rights ◽  
Perceived Vulnerability ◽  
Rational Decision Making ◽  
Meaningful Participation ◽  
Decision Making Processes ◽  
Meaningful Role

Abstract Decisional privacy offers individuals the freedom to act and to make important decisions about how they live their lives, without unjustifiable interference from other individuals or the state. Children's perceived vulnerability, incapacity for rational decision-making and dependence on adults have been used to justify depriving children of decisional privacy rights and subjecting them to the exercise of adult power over the conditions of their lives. The aim of this paper is to articulate a theory of children's decisional privacy. It is argued that decisional privacy is valued as a condition that enables individual autonomy. A relational, gradual conception of autonomy is advanced, to explain how children can be recognised as having the capacity for autonomy, and in some circumstances, actual autonomy. This paper presents four fundamental principles of a children's rights approach to decisional privacy, which collectively serve to enhance children's meaningful participation in decision-making about their best interests, consistently with children's evolving capacities and the receipt of appropriate parental direction and guidance. The theory developed in this paper presents an opportunity for adult decision-makers to reflect upon how they make decisions for and about children, and how children can play a meaningful role in those decision-making processes.

scholarly journals Decision Science: A New Hope

2018 ◽  
Vol 122 (6) ◽  
pp. 2417-2439 ◽  
Author(s):  
Lee J. Curley ◽  
Rory MacLean ◽  
Jennifer Murray ◽  
Phyllis Laybourn
Keyword(s):  
Decision Making ◽  
Process Model ◽  
Threshold Model ◽  
Dual Process ◽  
Future Research ◽  
Decision Science ◽  
Rational Decision ◽  
Rational Decision Making ◽  
Decision Making Processes ◽  
The Mind

Decision science is an area of enquiry that crosses many disciplines, from psychology to economics, each with their own perspective of decision-making. Traditionally, mathematicians have envisaged decision-making as a purely rational endeavor, whereas psychologists and behavioral economists have critiqued this narrative and suggested that cognitive short cuts are the real mechanisms behind how decisions are made. However, contemporary dual process theorists argue that two systems of the mind exist: system 1 (intuitive decision-making) and system 2 (rational decision-making). The current review will present a relatively new metaphor for decision-making: the unified threshold model. This model is a global approach to decision-making which allows both intuitive and rational decision-making processes to be explained in a more flexible manner than the dual process model. This review will introduce the reader to different types of threshold models (counter and diffusion), their assumptions, and their ability to explain decision-making behavior. Implications and future research will also be discussed. In summary, the aim of this review is to highlight that a rather than the unified threshold model of decision-making may give a more adequate explanation of decision-making data in comparison to previous models and theories.

Contingent use of rational, intuitive and political decision-making in R&D

2019 ◽  
Vol 58 (6) ◽  
pp. 997-1020 ◽  
Author(s):  
Linn Marie Kolbe ◽  
Bart Bossink ◽  
Ard-Pieter de Man
Keyword(s):  
Decision Making ◽  
Innovation Process ◽  
High Tech ◽  
Rational Decision ◽  
Political Decision ◽  
Content Type ◽  
Rational Decision Making ◽  
Decision Making Processes ◽  
Political Decision Making ◽  
Over Time

Purpose The purpose of this paper is to gain insight into the contingent use of rational, intuitive and political decision-making in R&D. Design/methodology/approach This research is based on a study in an R&D department of a multinational high-tech firm in the Netherlands. The study consists of a case study design, focusing on four embedded cases, longitudinally studying each case. Findings The literature distinguishes three dimensions of innovation decision-making processes: rational, intuitive and political. By studying these interwoven dimensions over time, this study finds that the dominant use of each of these dimensions differs across the innovation process. There is an emphasis on intuitive decision-making in an early phase, followed by more emphasis on political decision-making, and moving to more emphasis on rational decision-making in a later phase of the R&D process. Furthermore, the predominant choice in a specific innovation phase for one of the three decision-making dimensions is influenced by the decision-making dimension that is dominantly employed in the preceding phase. Research limitations/implications This study contributes to the innovation decision-making literature by developing and applying a model that distinguishes rational, intuitive and political decision-making dimensions, the interactions among these dimensions in innovation decision-making in R&D, and the contingency of these dimensions upon the innovation phase. It calls for further research into the contingent nature of innovation decision-making processes. Practical implications For practitioners this study has two relevant insights. First it highlights the importance and usefulness of intuitive and political decision-making in addition to the prevailing emphasis on rational decision-making. Second, practitioners may be more alert to consciously changing their dominant decision-making approach across the phases of the innovation process. Third, companies may adjust their human resource policies to this study’s findings. Originality/value The literature on rational, intuitive and political decision-making is quite extensive. However, research has hardly studied how these decision-making dimensions develop in conjunction, and over time. This paper reports on a first study to do so and finds that the dominant use of these dimensions is contingent upon the phase of the R&D process and on the decision-making dimensions used in earlier phases. The study suggests that using a contingency approach can help to further integrate the debate in research and practice.

The Egocentrism of Entrepreneurs: Bias in Comparative Judgments

2017 ◽  
Vol 9 (1) ◽  
Author(s):  
Jiseon Shin ◽  
Sang Kyun Kim
Keyword(s):  
Decision Making ◽  
Information Acquisition ◽  
Market Entry ◽  
Cognitive Biases ◽  
New Ventures ◽  
Comparative Judgment ◽  
Decision Making Process ◽  
Rational Decision Making ◽  
Decision Making Processes ◽  
Three Stages

Abstract Research in entrepreneurship decision making assumes that entrepreneurs use a relatively distinct decision-making process when it comes to market entry. Building on a biased comparative-judgment-formation framework and egocentrism theory, this article theorizes a model of entrepreneurs’ egocentric market entry decisions. Specifically, we illustrate how entrepreneurs may be vulnerable to cognitive biases in the three stages of decision making: information acquisition, evaluation, and comparative judgment formation. This article contributes to understanding the high failure rate of new ventures by suggesting that egocentric and myopic decision-making processes on the part of entrepreneurs may impede rational decision making.

scholarly journals Theorizing hit-and-run: A study of driver decision-making processes after a road traffic collision

2017 ◽  
Vol 19 (1) ◽  
pp. 45-61
Author(s):  
Matt Hopkins ◽  
Sally Chivers
Keyword(s):  
Decision Making ◽  
Rational Choice ◽  
Road Traffic ◽  
Analytical Framework ◽  
Decision To Leave ◽  
Rational Decision Making ◽  
Choice Decision ◽  
Road Traffic Collision ◽  
Decision Making Processes ◽  
Hit And Run

Explanations for driver decisions to hit-and-run have largely been based around a rational choice perspective that suggests drivers consider the expected costs of reporting a collision against the benefits of leaving the scene. Although such an explanation appears plausible, previous research has largely focused upon identifying contributory or contextual factors through analysis of quantitative datasets rather than engaging with drivers in order to understand how they make the decision to ‘run’. This article explores the application of the rational choice perspective to hit-and-run driving. First, it develops an analytical framework based upon the rational choice decision-making process put forward by Tay et al. in 2008. Second, through analysis of 52 interviews with offenders, it examines how drivers structure the decision to leave the scene. Third, a typology of drivers is developed that illustrates that hit-and-run is not always based upon rational decision making. Finally, the article concludes with some implications for further research and the prevention of hit-and-run collisions.

Cognitive Processing of Miscommunication in Interactive Listening: An Evaluation of Listener Indecision and Cognitive Effort

2021 ◽  
pp. 1-17
Author(s):  
Jennifer M. Roche ◽  
Arkady Zgonnikov ◽  
Laura M. Morett
Keyword(s):  
Decision Making ◽  
Cognitive Processing ◽  
Language Processing ◽  
Cognitive Effort ◽  
Mouse Tracking ◽  
Computer Mouse ◽  
Decision Making Processes ◽  
Computer Mouse Tracking ◽  
Listening Task ◽  
Processing Effort

Purpose The purpose of the current study was to evaluate the social and cognitive underpinnings of miscommunication during an interactive listening task. Method An eye and computer mouse–tracking visual-world paradigm was used to investigate how a listener's cognitive effort (local and global) and decision-making processes were affected by a speaker's use of ambiguity that led to a miscommunication. Results Experiments 1 and 2 found that an environmental cue that made a miscommunication more or less salient impacted listener language processing effort (eye-tracking). Experiment 2 also indicated that listeners may develop different processing heuristics dependent upon the speaker's use of ambiguity that led to a miscommunication, exerting a significant impact on cognition and decision making. We also found that perspective-taking effort and decision-making complexity metrics (computer mouse tracking) predict language processing effort, indicating that instances of miscommunication produced cognitive consequences of indecision, thinking, and cognitive pull. Conclusion Together, these results indicate that listeners behave both reciprocally and adaptively when miscommunications occur, but the way they respond is largely dependent upon the type of ambiguity and how often it is produced by the speaker.

“It's Not Humanly Possible to Do Everything”: Perspectives on Intervention Decision-Making Processes of Parents of Children with Autism Spectrum Disorders

2015 ◽  
Vol 22 (1) ◽  
pp. 13-21 ◽  
Author(s):  
Erinn Finke ◽  
Kathryn Drager ◽  
Elizabeth C. Serpentine
Keyword(s):  
Decision Making ◽  
Individualized Education Program ◽  
Children With Autism ◽  
Autism Spectrum ◽  
Sources Of Information ◽  
Individual Decision ◽  
Decision Making Processes ◽  
Spectrum Disorders ◽  
Interview Methodology ◽  
Communication Interventions

Purpose The purpose of this investigation was to understand the decision-making processes used by parents of children with autism spectrum disorder (ASD) related to communication-based interventions. Method Qualitative interview methodology was used. Data were gathered through interviews. Each parent had a child with ASD who was at least four-years-old; lived with their child with ASD; had a child with ASD without functional speech for communication; and used at least two different communication interventions. Results Parents considered several sources of information for learning about interventions and provided various reasons to initiate and discontinue a communication intervention. Parents also discussed challenges introduced once opinions of the school individualized education program (IEP) team had to be considered. Conclusions Parents of children with ASD primarily use individual decision-making processes to select interventions. This discrepancy speaks to the need for parents and professionals to share a common “language” about interventions and the decision-making process.

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