Research Paper on:
Decision Making and Limitations

Unformatted Sample Text from the Research Paper:
as an investor, the individual may feel that thy are making a logical analysis of the market, gathering together all of the facts in order to make a rational decision,  in realty there are many constraints, that even when recognised, cannot be overcome in totality. The same may be said of the decisions made by a business manger when going  through the decision making processes. Social attitudes, expectations, the limitations of time and the asymmetry of information are recognised as present, however, most individuals would like to think that they  can recognise opportunities, and in an emergent strategy also become opportunists. However, there is a negative connotation with the suggestion, if made to an investor or manger, that they are  constrained by bounded rationality. Bounded rationality is a phenomenon first described by Simon (1976) as a way that decision making will be constrained as a result of satisficing. The  process is still logical, but as a human mind is not unlimited and cannot compute all possible alterative, this may be seen as a self limiting mechanism. Simon (1976)  argued that the decision making process would have three boundaries, these would be the skill of the decision maker, the habits of the decision maker and their reflexes, all of  which are influenced by the motivational framework under which they operate, and finally their actual knowledge of the different issues that are relevant to the job (Simon, 1970). It has  been described as "intendedly rational but only limitedly so" (Simon, 1961 quoted in Dunn, 2001; 267). To consider this in detail we need to consider what this means in practice  rather than just as a theory. In this we will see that there is an allowance for different types of bias to influence the process, and that the process