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Asked by Joshua Gagen on Jun 22, 2024

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According to the behavioural decision model, competent managerseven with cognitive limitationscan make perfectly rational decisions in highly ambiguous situations.

Behavioural Decision Model

A theory that explains decision making by individuals based on psychological factors, including biases, perceptions, and other behavioral aspects.

Cognitive Limitations

Refers to the constraints on human information processing, including limited memory and attention capacity.

Perfectly Rational

Refers to a theoretical condition in decision-making where individuals make decisions by fully optimizing and considering all available information and potential outcomes.

  • Highlight the distinctions between classical and behavioral theories of decision-making.
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Logan NovelloJun 27, 2024
Final Answer :
False
Explanation :
The behavioral decision model suggests that due to cognitive limitations and the complexity of real-world situations, managers often rely on bounded rationality, simplifications, and heuristics, making it difficult to achieve perfectly rational decisions in highly ambiguous situations.

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