Bounded Rationality

           Dream team

Assignment: Decision-making

Question 1.

Reflect upon the concept “bounded rationality” based on what you have viewed in the film.

The concept of limited rationality is a model of human behavior, when people behave like "rational" beings.

In many economic models, it is believe that people are super-smart and never do anything, which is contrary to their interests. The example of the film "Thirteen days", where the action takes place during the Caribbean crisis, when an extremely tense political, diplomatic and military confrontation between the Soviet Union and the United States. The US president makes a decision by rational choice thereby satisfying his interests, namely not to unleash a war and secure his country.

In reality, people and organizations are only considering a relatively small number of alternative options and often stop searching for the best option. An example is the moments from the film when the military council limited itself to such variants as: "Blockade, quarantine, and sudden intrusion" -This is called the search for a satisfactory solution

Question 2.

Based on what I saw in the film, I can say that coalition decision-making is a decision at the level of the organization, which usually connected with many managers, and that managers can make the final choice only in a coalition. An example might be that throughout the film the actors acted as a single co-operation, namely the "US government", with equally similar organizational goals and priorities for the problem.

Question 3.

After watching the film, I can highlight several aspects of the Carnegie model. As a rule, it is necessary to create a coalition of managers when making managerial decisions for two reasons.

First, it often happens that the goals of the organization not defined, and the operational tasks of the units are contradictory. For example, at the beginning of the film, the US Government could not decide exactly what their goal was, to solve the problem by exploding the missiles, but at the same time launching a war or solving the problem diplomatically. The second example, the tasks of units of the US government were contradictory, the task of the military council was to destroy missiles as quickly as possible, and the task of the presidency council was to solve the problem diplomatically. When goals are unclear and incompatible, managers cannot come to a common opinion about the priorities of problems. Therefore, they must certainly come together and decide what problems should be solve first. The second reason for creating a coalition is that each of the managers, of course, tends to be rational, but he cannot escape the constraints associated with the factors described higher

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