ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -How Can A Decision Impact Others? There is a chain of events associated with everything decision we make. The bigger the decision, the more life-changing the chain of events will be for the decision-maker and others around them. The impact can be positive or negative, but there is always a consequence.

Detailed explanation-2: -It deepens the connection and increases the amount of trust that you have for each other. It creates a sense of reassurance that they are always putting each other’s needs on the same level – if not above – their own.

Detailed explanation-3: -The factors influencing decision-making are personality, culture, context, information available, and level of education. These factors should be kept in mind whenever a person is taking any decision, as some of them can be controlled but not all, like personality or culture.

Detailed explanation-4: -The decision affect theory depicts that people make choices based on maximization of their emotional experience rather than utility (Mellers et al., 1997). Emotional responses to an outcome not only depend on its utility but also on the probabilities and unobtained outcome.