A Hypothesis on Rationalizing Decisions by Constructing Personal Realities
Jan 12, 2022
DOI:
Published in: Int. J. of Economics and Business Research
Publisher: Inderscience
In this paper, we propose a hypothetical model to show how people construct their realities, and how they subjectively rationalize their decisions and actions. We hypothesize that when making individual decisions, what matters is the reality as perceived by individual decision makers, regardless of the objective or subjective approach to reality. The paper attempts to study the link between perceived reality (subjective reality), and how people rationalize their decisions and actions. The paper sheds light on how people know what they know, and how that might affect their sense of rationality when making decisions. The paper explains that people come across knowledge in a daily basis, and that they decide to accept, reject, or adjust that knowledge, using their subjective validation process that is guided by their experiences, biases, and beliefs.