Practice question · Match the pairs
Match each decision model to its signature.
- Rational model
- Bounded rationality
- Intuition
- Escalation of commitment
- Doubling down publicly on a failing course
- Maximize: evaluate every alternative against every criterion
- Satisfice: stop at the first good-enough option
- Pattern recognition compiled from experience
Hints
- Ask whether the model assumes full information, limited search, or none.
- One model stops at the first option that is good enough.
Show the answer
- Rational model → Maximize: evaluate every alternative against every criterion
- Bounded rationality → Satisfice: stop at the first good-enough option
- Intuition → Pattern recognition compiled from experience
- Escalation of commitment → Doubling down publicly on a failing course
Why
Three ways to choose and one way to keep choosing wrong. Simon’s satisficing is the realistic middle, not a defect.
Practise Decision Making
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