Decision making is a systematic cognitive process defined by the evaluation of opportunity costs and the mitigation of psychological biases such as loss aversion, anchoring effects, sunk cost fallacies, motivated blindness, and confirmation bias. This framework operates within the domain of behavioral economics and organizational psychology, specifically addressing how individual choice mechanisms intersect with ethical accountability and strategic risk assessment in business environments. The theory posits that rational decision-making requires deliberate analysis over arbitrary outcomes while establishing cutoff points to prevent entrapment by planning fallacies or escalating commitment errors.
Decision making is a systematic cognitive process defined by the evaluation of opportunity costs and the mitigation of psychological biases such as loss aversion, anchoring effects, sunk cost fallaci…