Highlights
Task:
Decision Theory is an interdisciplinary subject emerging from different disciplines: economics, operations research, psychology, sociology, social psychology, mathematics, etc.
Decision theory brings together these interdisciplinary subjects to analyse the decision-making process and underlying assumptions.
The way you view the world (or a problem) has a lot to do with the theoretical assumptions you hold regarding reality, knowledge, and human nature. As such, some theories will appeal to you because their assumptions confirm your view of the world.
Understanding how decisions are made is a key concern for managers. Extending our observation to address who, why, when, and what, broadens our understanding of the context, theory, and underlying assumptions in managerial decision making.
– You can pass judgement without impartiality.
– You make sense of your individual experience and use that knowledge to interpret phenomena in the environment.
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