Traditional Culture Encyclopedia - Traditional festivals - What is the theoretical premise of the fully rational decision-making model that decision makers do?
What is the theoretical premise of the fully rational decision-making model that decision makers do?
The theoretical premise of the fully rational decision-making model is that decision-makers are economic beings.
The assumption of economic man in Western classical economics assumes that people are perfectly rational and can make choices that maximize their own interests.
Simon, the 1978 Nobel Prize winner in economics, revised this assumption and put forward the concept of "limited rationality", arguing that people are between complete rationality and irrationality in the state of "limited rationality".
Rational decision-making in practice must have the following basic conditions:
1, the decision-making process must have access to all valid information.
2, find out all the decision-making options related to the realization of the goal.
3, the ability to accurately predict the results that each option can produce under different objective conditions.
4. To know very well the social value bias of those who are directly or indirectly involved in public *** policy making and their relative weight.
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