Rational Decision Making

This book is designed to support you in making difficult decisions in a more - tional way. Based on an established theoretical foundation, it shows that simple requirements concerning rational behavior lead to a general calculus of determ- ing optimal decision alternatives; the book then goes on to present methods and instruments useful for the practical implementation of these concepts. Psychological research has uncovered a multitude of systematic cognitive - ases associated with the intuitive decision process, especially concerning the f- mation of preferences and subjective probability judgments for uncertain events. These developments have elevated prescriptive decision theory to the status of an important discipline with increasingly strong practical ties – nowadays, even m- agers are concerned with decision trees, probability distributions and risk profiles. There is also a wide range of software available on the market to aid users with the use of the instruments. We would