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Unformatted text preview: -Certainty-Risk-Uncertainty-Ambiguity Decision Making Models-classical -adminstrative-political Classical Model-classical model assume (rationality)-goals are clearly understood-problems can be precisely formulated-Classical Model Assumes-all alternatives can be known-criteria for evaluating alternatives are known-decision maker is rational, logical-This is an ideal Chapter 9-works for programmed decision where probabilities can be calculated-managers expected to advance company’s best economic interests (make optimal decisions) Administrative Model-based on work of Herbert simon: -Two important concepts-bounded rationality-sastisficing-within limits set we’re not going to try to maximize or optimize, produce an outcome that will be good enough-How mangers actually make decisions-intuition-political activity Political Model-very “real”-decisions are complex-competing interests-conflict...
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This note was uploaded on 08/16/2011 for the course ECON 300 taught by Professor Laren during the Spring '11 term at Missouri State University-Springfield.
- Spring '11