Rational decision making

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This book supports you in making difficult decisions more rationally. Grounded in established theory, it illustrates how simple requirements for rational behavior lead to a general calculus for determining optimal decision alternatives. The text presents practical methods and instruments for implementing these concepts. Psychological research highlights systematic cognitive biases in intuitive decision-making, particularly regarding preference formation and subjective probability judgments for uncertain events. This has elevated prescriptive decision theory to a crucial discipline with strong practical relevance; even managers are now engaged with decision trees, probability distributions, and risk profiles. A range of software tools is available to assist users in applying these instruments. Through practical questions and case studies included in most chapters, the book demonstrates that the material is not just academic but also offers significant practical value. The mindset proposed by the theory for tackling decision problems will be beneficial in both your personal and professional life, even if you do not apply the decision-making support methods in every detail.