Economists are friends of the so-called “prescriptive expected utility theory,” which guarantees them a minimum level of rationality in decision preparation. The model of expected utility theory is characterized by a certain standard of norms, i.e., a rule-based and orderly approach, to meet the demand for consistency or coherence. Even in the face of uncertainties, there are formal requirements on how to calculate the achievement of goals or personal preferences through probability assumptions. They differ from game-theoretical concepts primarily in the dramaturgy. Actions of a potential player or competitor are not directly considered in this calculation approach, and the decision-maker can fully focus on their preference structure and the consequences of their behavior to achieve an optimal result for themselves. The focus on methodology requires a lot of self-discipline in this approach and thus probably also self-suggestion!

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Economic Concepts of “Rational Decision-Making”

  • Heribert Wienkamp

摘要

Economists are friends of the so-called “prescriptive expected utility theory,” which guarantees them a minimum level of rationality in decision preparation. The model of expected utility theory is characterized by a certain standard of norms, i.e., a rule-based and orderly approach, to meet the demand for consistency or coherence. Even in the face of uncertainties, there are formal requirements on how to calculate the achievement of goals or personal preferences through probability assumptions. They differ from game-theoretical concepts primarily in the dramaturgy. Actions of a potential player or competitor are not directly considered in this calculation approach, and the decision-maker can fully focus on their preference structure and the consequences of their behavior to achieve an optimal result for themselves. The focus on methodology requires a lot of self-discipline in this approach and thus probably also self-suggestion!