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Case: The Rational Decision-Making Process, detailed in Figure 8.3 on p. 175 of your textbook, can help even the most irrational among us arrive at value maximizing decisions. When considering the rational decision-making process it is important to acknowledge the 3 primary assumptions noted on p. 175: (1) "the model assumes that humans are economic beings with the objective of maximizing satisfaction or return"; (2) "it assumes that...all alternatives and their possible consequences are known"; and (3) "decision makers have some sort of priority system to guide them in ranking the desirability of each alternative".
Thus, we actually operate under the guise of Bounded Rationality and its friend, Satisficing. Or, we skip all these 'steps' and go straight to Intuition, Heuristics, or Biases.
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