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What is Decision Science?
The interdisciplinary study of how people make choices, combining psychology, economics, neuroscience, and philosophy.
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Rational Choice Theory
The classical model: people have complete information, consistent preferences, and maximize utility. Spoiler: this is almost never true.
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Bounded Rationality
Herbert Simon's insight: we do not optimize, we satisfice. We make decisions that are 'good enough' given our limited time, information, and cognitive resources.
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Prospect Theory
Kahneman and Tversky's Nobel-winning framework: people evaluate outcomes relative to a reference point, and losses loom larger than gains.
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Expected Utility vs Expected Value
Why a 50% chance of $200 does not feel the same as a guaranteed $100. Risk preferences shape every decision.