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Decision-making in the inductive mode: The role of human behavior
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Economists have convulsively maintained the assumption that humans are able to arrive at decisions by perfect deductive rationality, despite the fact empirical evidences are showing otherwise. The contradicting evidences have resulted in a personal view that instead of finding a unified theory about decision-making, a sound approach would be to study how humans in fact are reasoning in specific contexts. The context of interest for this paper is where it could be assumed humans’ persistence of acting rational is determined by the perceived burden of the problem. In this work, the inductive way of arriving at decisions plays an important role, and the paper will present a way of describing this process in a consistent way. The process will be denoted as the actual level of behavioral change, and represent the core property of this paper. Applying the presented theory is most appropriate for situations where it could be assumed the burden of a problem, expressed as a prevalence rate, will drive the behavioral change. The line of reasoning in this paper will therefore be applied to the important arena of fighting the spread of HIV.

Place, publisher, year, edition, pages
2013. , 33 p.
Series
Examensarbete INDEK, 2013:09
Keyword [en]
Rational decision-making, deductive reasoning, inductive reasoning, bounded rationality, behavioral change, SWHAP, HIV
National Category
Economics
Identifiers
URN: urn:nbn:se:kth:diva-134385OAI: oai:DiVA.org:kth-134385DiVA: diva2:666630
External cooperation
Swedish Workplace HIV/AIDS Program (SWHAP)
Subject / course
Economics of Innovation and Growth
Educational program
Master of Science - Entrepreneurship and Innovation Management
Presentation
2013-09-13, 17:34 (English)
Supervisors
Examiners
Available from: 2013-11-27 Created: 2013-11-23 Last updated: 2013-11-27Bibliographically approved

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Master Thesis Johan Nobel(920 kB)332 downloads
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