| Bounded rationality | Processing limitedand imperfect information andsatisficing rather than maximizingwhen choosing among alternatives.
|
 |
|
|
| escalation of commitment | The tendencyto repeat an apparently bad decisionor allocate more resources to afailing course of action.
|
|
|
|
| implicit favourite | The decisionmaker's preferred alternative againstwhich all other choices are judged.
|
|
|
|
| intuition | The ability to know when a problem or opportunity exists and select the best course of action withoutconscious reasoning.
|
|
|
|
| postdecisional justification | Justifying choices by unconsciously inflating the quality of the selected option anddeflating the quality of the discardedoptions.
|
|
|
|
| prospect theory | An effect in which losing a particular amount is more disliked than gaining the same amount.
|
|
|
|
| satisficing | Selecting a solution that is satisfactory, or "good enough" rather than optimal or "the best."
|
|
|
|
| scenario planning | A systematic process of thinking about alternative futures, and what the organization should do to anticipate and react to those environments.
|