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Why do we diverge from the Rational Choice Paradigm when identifying problems and
opportunities?
Solution
We diverge from the Rational choice Paradigm while identifying the problem and opportunity
because it seems so logical, but is impossible to apply in reality. The reason behind it is that the
model assumes that ‘people are efficient and are logical information processing machines’. But
in reality, people have difficulty in recognizing problems and they cannot process the volume of
information needed to identify the best solution to the problems; and even they face difficulty
recognizing when and where their choices have failed. The second reason why the rational model
doesn’t fit in reality is that it only focuses on logical thinking and ignores the fact that the
emotions also influence, in fact even dominate the decision-making process

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Why do we diverge from the Rational Choice Paradigm when identifying.pdf

  • 1. Why do we diverge from the Rational Choice Paradigm when identifying problems and opportunities? Solution We diverge from the Rational choice Paradigm while identifying the problem and opportunity because it seems so logical, but is impossible to apply in reality. The reason behind it is that the model assumes that ‘people are efficient and are logical information processing machines’. But in reality, people have difficulty in recognizing problems and they cannot process the volume of information needed to identify the best solution to the problems; and even they face difficulty recognizing when and where their choices have failed. The second reason why the rational model doesn’t fit in reality is that it only focuses on logical thinking and ignores the fact that the emotions also influence, in fact even dominate the decision-making process