Rational and irrational processes in decision making: An economic perspective
Journal Title: Mental Health: Global Challenges Journal - Year 2018, Vol 1, Issue 1
Abstract
The paper presents important issues of decision making processes with an emphasis on rational and irrational components of these processes. After a short introduction outlining the need for a deeper understanding of rational and non-rational factors that affect the decisions people make, the rationality of people decisions in daily life is questioned and the role of non-rational factors such as intuition are analyzed. The economic understanding of the decision making process is presented and principles of rational decision-making are explained. Different methods used and recommended by economists in order to make decisions are presented and applied in different life situations in order to demonstrate their value in daily life. Special emphasis is put on factors such as imperfect information, illusion of control, or risk aversion that may affect the rationality of the decision making processes. In the final section of the paper the concept of bounded rationality is introduced and explained along with new theories in economics that are challenging the classic economic perspective on the decision making process
Authors and Affiliations
Maria Liana Lacatus
Keywords
Related Articles
- EP ID EP591147
- DOI 10.32437/mhgcj.v1i1.21
- Views 198
- Downloads 0
WHAT DO TEENAGERS PARENTS KNOW ABOUT DRUG USE AND HOW DO THEY UNDERSTAND PREVENTING IT?
Introduction On one hand, drug use has become an extremely welcomed subject because it „needs to be”, and because it has to be treated seriously; on the other hand, it is addressed to with great ignorance among all the...
Hardiness as a factor of psychological resilience of youth in conditions of military conflict
Our purpose was to understand and establish the peculiarities of hardiness as a factor of the psychological resilience of young people living in the conditions of a military conflict
Quality of life among elderly population
Introduction: Quality of Life (QoL) among elderly is an important issue that reflects the status of well-being of this vulnerable population. Aim: This study aims to assess quality of life among elderly population and...
IMMIGRATION AND MENTAL DISORDERS
Introduction: Immigration is the movement of people into a country where they will remain as its permanent residents or future citizens without having citizenship. Purpose: The purpose of this review study is to highl...
Coping strategies for exam stress
During the examination period, students experience a state of stress generated both by the exams themselves and by the fear of getting bad grades and implicitly a failure. This problem needs to be taken into consideratio...