Common Ratio - What would a normative theory of decision making predict about choices?

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A normative theory of decision making would predict that individuals will make choices that optimize their utility, meaning that they will take into consideration their short-term and long-term implications and make decisions that they believe will ultimately produce the greatest reward or outcome. Its predictions are based on the individual's evaluation of the social, economic and personal implications of various choices. In addition, it would suggest that individuals will generally opt for simple choices, as opposed to complicated ones, since complex choices require a greater amount of effort and it would take longer to decide between them.

Answered by kevin14

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