Rational decision-making model

The rational decision-making model. Describes how individuals should behave in order to maximise some outcome.

Bounded rationality. A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

Intuitive decision making: An unconscious process created out of distilled experience.

It is often thought that the best decision maker is rational and makes consistent, value-maximising choices within specified constraints. The rational decision-making model relies on a number of assumptions, including that the decision maker:
-Has complete information
-Can identify all the relevant options in an unbiased manner
-Chooses the option with the highest utility.