CDMRA (Centre for Decision Making and Risk Analysis) addresses three fundamental and inter-related questions. First, how should a "rational" person make decisions under risk and uncertainty? This question is at the heart of economics, and often serves as a baseline for evaluating human decision making. Second, how do people actually think about risk and uncertainty, and how do they make decisions? This question draws upon concepts from psychology and sociology. Finally, given what we know about rational decision making and actual behaviour, how can we help people, especially managers, improve their decision making? The purpose here is to combine the rational and the descriptive approaches, in an attempt to resolve some of the paradoxical tensions between gut feeling and logical reasoning, and come up with easy to use prescriptions. |