Human Beings Are Endowed With An Individual Level Essay

1127 Words Dec 1st, 2015 5 Pages
One of the fundamental capabilities of humans that have been exploited especially in the business world is their ability to make choice, in most cases, rational ones. Human beings are endowed with the capability to make prudent choices and decisions which the view of maximizing their experience or satisfaction. At individual level, any decision arrived is meant to the highest self-interest and bring the greatest satisfaction to the decision maker. This subjective view of the reasons why individuals make decisions reduces the logicalness of any decision to an individual level. Ultimately, rationality and logicality is reduced to a subjective matter that differs from one individual to another. Such reasoning, has in most cases, been adopted by businesses too in their decision making. Businesses, like individuals, are driven by the need to serve their highest self-interest with every decision they make. From profit maximization to customer and employees experience, loyalty and retention, businesses rank the logicality of pursuing any of these goals based on their vision, goals, objectives and prevailing market conditions (Milgrom and Levin 1). One of the commonest theories fronted by many economists in understanding human and, business entities’ behavior by extension with regards to decision making, is the rational choice theory. The theory, first proposed by early economists such as William Stanley Jevons, postulates that the ultimate goal of making decisions by any agent is…

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