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Behavioral decision theories describe human decision making
behavior. Behavioral decision research focuses primarily on how decisions
actually are made. Research often compares actual decision making to some
standard of rationale decision making behavior. For example, we know from
behavioral decision reseach that humans are prone to errors and
bias, have limited information processing
capacity, and do not always make decisions that are in their own best
interest.
Understanding deviations from normative standards and
decision biases are important for two reasons: (1) They offer insight into the
cognitive processes underlying human decision making and (2) indicate areas
where improvement can be made. |