Decision Theory

Utility

A recurring theme in decision theory is utility. Utility is a measure of the benefit of each decision alternative, or what consequences the alternative may bring. Expected utility is the potential outcomes of a decision and their usefulness to the decision maker. Decision theory often holds that the best decision is the one that generates the greatest expected utility.

Tapan Biswas (1997) offered that the decision maker is normally conceived in theoretical decision models as a utility maximizer. However, many decision theorists have noted that in reality, people often make choices that are less than maximized, choosing things that result from an imperfect situation or will simply satisfy their needs. Thus, satisficing is when the decision maker is unable to maximize utility because of imperfect information or alternatives but makes do with what is available.

Stephen P. Robbins (1990) explained satisficing as “Good enough replaces maximization as a criterion of effectiveness” (p. 263). Because satisficing does not lead to optimal conditions or results, it generally renders a temporary solution. Problems that are not resolved to the satisfaction of all parties, including those decisions that simply satisfice, prove to be an unstable base for relationship building in public relations.

Factors that influence decision making are complex. John P. van Gigch (1974) wrote, “The search process by which the mind generates alternatives is still only partially understood” (p. 59). For example, consider the pressure of human interaction on the decision. Ronald R. Sims (1994) stated, “Pressure toward conformity … is the main factor that leads individuals to make and own defective decisions” (p. 56). Commonly referred to as “group think,” the influence exerted by social norms, role expectations, group membership, and fear of negative repercussions is considerable. Decision theory is an attempt to assuage the influences of these factors in favor of a more scientific decision-making framework.

Another factor that influences decision making is the choices, or lack thereof, perceived by the [Page 247]decision maker as possible or available to him or her. A decision is only as good as the best choice available to the decision maker. However, the decision maker must be free to actually enact an option before considering it a viable alternative, worthy of analysis, investigation, and potential implementation. At this juncture, autonomy and options are vitally important. Frederic Schick in 1997 argued, “Choices presuppose options, and having the option of doing something implies that you think you are free to do it” (p. 9).

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