1. Bounded Rationality:
This, in fact, is a non-rational model. In such case, the individual decision maker tries to justify his/her decision within the ambit of availability of information and the given resource constraint. In other words, it can be called ‘thinking on constraint’.
2. Incremental Model:
Decisions using such model are essentially short term, and therefore, lack long-term perspective. Such decision makers believe in immediate gains, rather than gains in the long run; hence, they cannot take decision for projects that can give them long-term sustainability.
3. Garbage Can Model:
Such decisions are intuition based and largely depend on the gut feelings of the individual decision makers. These types of decision makers are more of gamblers or risk takers, rather than risk averters. Even with 40 per cent probability of success, they do not mind to decide.
Late Dhirubhai Ambani, the founder of Reliance Group, and Jack Welch, ex-CEO of G.E., often used to take decisions based on their intuition and gut feeling. Obvious danger in such type of decision making is that, it may succeed or may not succeed. Perception influences individual decision making in terms of choosing the specific style of decision and also in terms of risk-taking and risk-averting attitude on a specific decisional issue.
Again, the preference the individual decision maker plays a major role.