Discuss the three predominate models of individual decision-making

What will be an ideal response?

The rational-economic model is the search for the ideal or optimum solution. It follows the same steps as the traditional analytical model, but calls for the decision maker to recognize all courses of action and to evaluate each one. The model is both normative and prescriptive. The administrative model recognizes bounded rationality that limits the making of optimally rational-economic decisions. Decision makers consider alternatives as they present themselves taking the first alternative that meets the criteria for acceptability. Such decisions are satisficing decisions. Bounded rationality is the assumption that human limitations lead to satisficing decisions rather than optimal decisions. Image theory is an intuitive approach to decision-making using a simple two-step process; that is, a compatibility test and a profitability test.