The Economic Decision



The Economic Decision

Every decision is made within a decision environment, which is determined as the collection of information, alternatives, values, as well as preferences obtainable at the time of the decision. A perfect decision environment will include all probable information, all of it correct, and every potential alternative. Nevertheless, both information as well as alternatives is constrained because the time and effort to add information or recognize alternatives are limited. The time constraint just means that a decision must be made by a particular time.

As it can be seen in the first case the price of the item ...