In: Economics
The nature of a decision process and its rationality are empirical questions that must be addressed by primary field study, experimental tests, and other means. But whatever your view about the sophistication and rationality of decision making, your models must conform to certain basic principles.
a. Explain the principles of modeling human behavior (500 words
please at least 450 words
There is necessity to construct the theoretical understanding
and presentation of human communication, emotional wonder and
desperation, noble and selfish biases, nationalism, global politics
and different forms of spirituality. The important feature of human
behaviour is fundamental and irrespective concept of narrative.
Human behaviour as unexpected and inconsistent in nature. Human
behaviour modelling is based on random distribution. All choices of
human being are equal and uncertain about the decision making.
Modelling of behaviour can be done through statistically like
without dealing within individual. The decision making process is
based on the past works done and their experience. The most
important principle of human behaviour is;
Human as an information processors; processing of information
through sensory measures about environment, current status and
history of their action. Environmental sensors consist of touch,
sight, smell, hearing and taste. But humans having the capability
to sense the temperature, internals, pain, balance ad acceleration.
There are personality traits that influence the characteristics by
effects like thoughts, behaviour, emotions, relatively constant
over life span and also a larger part of the individual
differences. Human beings having limited informational
inputs.
Human motivation; motivation are mainly hierarchy in nature. Human
beings tried to need to meet their basic psychological
requirements. The next priority is based on safety and security.
Next need comprises of social needs of friendship, family and
sexual intimacy.
Rationality in human behaviour; human beings maximise their
benefits and minimise their costs through logical processing. All
agents have perfect knowledge about the environment; there is
necessary ordering and transitivity properties. The concept of
bounded rationality shows the limited availability of information
and cognitive abilities. Human knowledge accepted in two basic
forms; declarative knowledge and procedural knowledge. Rational
behaviour represents the knowledge, learn, remembering of new
knowledge and also applying this knowledge.
Emotional or unconsciously human behaviour; there are several
factors which affect the human behaviour include intuitive,
emotional or unconscious decision making. Emotional effect on
decision making have leading impact on non-traditionally rational
decision making process. Impact of emotion cannot be classified as
improving or degrading.
Social human behaviour; there are two ways to find the socially
human behaviour; theory of mind and combining behaviour with
others. Theory of mind shows the transfer of information based on
establishing and sharing of common concepts.
There are several conceptual framework emerged in the field of
human decision making. The most important approach used is belief,
desire and intensions. The second framework includes physical,
emotional, cognitive and social factors which have huge influence
over the decision making of human behaviour. Third framework is
called fast and frugal.