Generally accepted constructs of decision making are employed by each of us to make determinations. These constructs are rational decision making, bounded rationality, and intuition. Though their processes make sense, they may not lead to the most accurate (or best) decisions in a given situation. We often think the best decision maker is rational and makes consistent, value-maximizing choices within specified constraints. Rational decisions follow a six-step rational decision-making model.

Because the human mind cannot formulate and solve complex problems with full rationality, we operate within the confines of bounded rationality. We construct simplified models that extract the essential features from problems without capturing all their complexity. We can then behave rationally within the limits of the simple model. To use the rational model, you need to gather a great deal of information about all the options, compute applicable weights, and then calculate values across a huge number of criteria.

Perhaps the least rational way of making decisions is intuitive decision making, an unconscious process which relies on links between disparate pieces of information; is fast; and is affectively charged, meaning it engages the emotions. While intuition isn’t rational, it isn’t necessarily wrong, nor does it always contradict rational analysis; the two can complement each other. Decision makers engage in bounded rationality, but they also allow systematic biases and errors to creep into their judgments. Relying too heavily on feelings and shortcuts can distort rationality.