👉 Rational

I use it when:

✅ Information about alternatives can be gathered and evaluated

✅ The decision is important

✅ We strive for maximum end result

Errors occur due to:

❌ Incomplete or inaccurate information

❌ Cognitive biases – searching for data that supports preconceived ideas, ignoring contradictory evidence

❌ Overestimating the accuracy of available information, leading to misjudgments

❌ Time and resource constraints

▪️ Example: taking out a 30-year mortgage for $400k requires a rational decision

👉 Limited rationality

I use it when:

✅ The minimum criteria are clear

✅ You don’t have or don’t want to invest time in making a decision

▪️ Example: Accepting the first job offer from LinkedIn that meets minimum criteria such as salary and location is an example of limited rationality.

Errors are made due to:

❌ Processing limited information

❌ Overreliance on initial information

❌ Framing effects: the way the problem is presented can skew choices

👉 Intuitive

I use it when:

✅ Goals are unclear

✅ Time is pressing and not making a decision increases costs

✅ You have experience with the problem

▪️ Example: A manager with years of experience may intuitively decide to change their marketing strategies based on market trends without detailed analysis.

Mistakes are made due to:

❌ Lack of relevant experience: intuition is often only effective when the decision-maker has extensive experience with similar problems

❌ Overemphasis on recent or vivid events

❌ Emotional influence: stress, excitement, or fear can distort intuition

👉 Creative

I use it when:

✅ The solutions to the problem are not clear

✅ New solutions need to be generated

✅ You have time to explore the problem in depth

▪️ Example: a company facing declining sales uses guerrilla marketing

Mistakes are made due to:

❌ Impractical solutions – creative ideas may be original but unfeasible or unprofitable

❌ Groupthink: in a team environment, pressure to conform can stifle critical evaluation of creative ideas, leading to wrong decisions

❌ Lack of structure: without a clear process for filtering and reviewing creative ideas, decision-makers pursue unviable options

💡 By understanding the nuances of decision-making and applying adjustments, those involved in the process can improve the effectiveness of their choices across all models.