A REVIEW STUDY ON THE PARADOX OF RATIONALITY IN DECISION-MAKING: ROLE OF INDIVIDUAL FACTORS

Back to Page Authors: Deepshikha Paliwal

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Keywords: individual factors, decision-making, rationality theory, individual differences

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Abstract: Since the concept of cognitive biases and heuristics introduced in the field of decision making, a major shift has come in this field. Psychologists have turned their interest to understand all those factors which are responsible for deviating humans from rationality. Out of various factors, individual factors are one of the important factors which have been studied extensively in the last two decade. Psychologists correlated the individual factors like personality traits, cognitive styles, decision styles, epistemic motives, metacognitive ability, etc. with individual’s decisions and choices and found the significant effects of these factors in the results. After reviewing the studies it is understood that some effective work has been done in this area but much is needed to explore some important correlations such as how neuro-biological factors of the individuals correlates with decision choices, personality traits with risk tendencies, decision styles and cognitive styles with decisions in uncertain conditions, etc. these are the areas which can give some important insights to understand the role of individual factors more effectively in deviating the rational decision-making.

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