List and explain any 6 models of decision making?

1. Rational decision-making model: This model assumes that individuals make decisions by systematically evaluating all possible alternatives and choosing the one that maximizes their utility. It involves identifying the problem, generating alternative solutions, evaluating each option, and selecting the best one based on a rational analysis of the available information.

2. Bounded rationality model: This model recognizes that individuals do not always have the time, resources, or cognitive capacity to consider all possible alternatives when making decisions. Instead, they use heuristics or shortcuts to simplify the decision-making process and choose a satisfactory solution that meets their needs, rather than the optimal one.

3. Satisficing model: This model suggests that individuals often settle for a solution that is "good enough" rather than striving for the best possible outcome. They set criteria for an acceptable solution and choose the first option that meets those criteria, rather than exhaustively evaluating all alternatives.

4. Intuitive decision-making model: This model emphasizes the role of intuition, gut feelings, and instinct in decision-making. Individuals rely on their past experiences, emotions, and subconscious knowledge to make quick and effective decisions without engaging in a formal analysis of the situation.

5. Incremental decision-making model: This model involves making small, incremental changes or adjustments to existing strategies or solutions rather than making radical or revolutionary decisions. It allows for flexibility, adaptability, and learning from past experiences to gradually improve outcomes over time.

6. Garbage can model: This model views decision-making as a chaotic and unpredictable process where problems, solutions, participants, and choices are constantly changing and intersecting. Decisions are made in a "garbage can" of opportunities, problems, and solutions that are randomly mixed together, leading to non-linear and unpredictable outcomes.

1. Rational Model:

- Assumes individuals are rational, logical, and seek to maximize expected utility.
- Involves gathering all relevant information, evaluating it objectively, and choosing the option with the highest expected value.

2. Bounded Rationality Model:

- Acknowledges that individuals are bounded by cognitive limitations and do not have perfect information.
- They make decisions based on simplified models and heuristics, which can introduce bias.

3. Satisficing Model:

- Assumes individuals seek a "good enough" solution, rather than the optimal one.
- They choose the first option that meets their minimum acceptability criteria.

4. Prospect Theory Model:

- Focuses on how individuals evaluate gains and losses differently.
- Gains and losses are perceived relative to a reference point (e.g., current wealth), and individuals are more risk-averse for losses than gains.

5. Cognitive Bias Model:

- Recognizes that individuals' decisions are influenced by subconscious biases, such as confirmation bias, anchoring bias, and the availability heuristic.

6. Dual-Process Theory Model:

- Proposes that decision-making involves two systems:
- System 1: Fast, intuitive, and automatic, driven by emotions and heuristics.
- System 2: Slow, deliberative, and rational, driven by logical reasoning and analysis.