Who contribute definition of decision making in economics?
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In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. Every decision-making process produces a final choice, which may or may not prompt action.
Decision-making is the process of identifying and choosing alternatives based on the values, preferences and beliefs of the decision-maker.
Decision-making can be regarded as a problem-solving activity yielding a solution deemed to be optimal, or at least satisfactory. It is therefore a process which can be more or less rational or irrational and can be based on explicit or tacit knowledge and beliefs. Tacit knowledge is often used to fill the gaps in complex decision making processes. [1] Usually both of these types of knowledge, tacit and explicit, are used in decision-making process together. Explicit knowledge is less likely to result in major decisions than tacit knowledge, which means that the decision-making process usually relies on knowledge acquired through experience.[2]
Human performance has been the subject of active research from several perspectives:
Psychological: examining individual decisions in the context of a set of needs, preferences and values the individual has or seeks.
Cognitive: the decision-making process regarded as a continuous process integrated in the interaction with the environment.
Normative: the analysis of individual decisions concerned with the logic of decision-making, or communicative rationality, and the invariant choice it leads to.[3]
A major part of decision-making involves the analysis of a finite set of alternatives described in terms of evaluative criteria. Then the task might be to rank these alternatives in terms of how attractive they are to the decision-maker(s) when all the criteria are considered simultaneously. Another task might be to find the best alternative or to determine the relative total priority of each alternative (for instance, if alternatives represent projects competing for funds) when all the criteria are considered simultaneously. Solving such problems is the focus of multiple-criteria decision analysis (MCDA). This area of decision-making, although very old, has attracted the interest of many researchers and practitioners and is still highly debated as there are many MCDA methods which may yield very different results when they are applied on exactly the same data.[4] This leads to the formulation of a decision-making paradox.
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