Complex Decisions

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Complex decisions

Other areas of decision theory are concerned with decisions that are difficult simply because of their complexity, or the complexity of the organization that has to make them. Individuals making decisions are limited in resources (i.e. time and intelligence) and are therefore boundedly; the issue is thus, more than the deviation between real and optimal behaviour, the difficulty of determining the optimal behaviour in the first place. One example is the model of economic growth and resource usage developed by the Club rome to help politicians make real-life decisions in complex situations. Decisions are also affected by whether options are framed together or separately; this is known as the distincation bias.

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