List and briefly explain the four principles of individual decision-making?

The four principles of individual decision-making are:

1. Rationality: Individuals aim to make decisions that maximize their utility by evaluating options logically and considering the potential outcomes and their probabilities.

2. Satisficing: Rather than seeking the optimal solution, individuals often settle for a satisfactory option that meets their criteria, especially when faced with complexity and time constraints.

3. Bounded Rationality: Decision-makers operate within cognitive limits, meaning they may not have access to all information or the ability to process it fully, leading to simplified decision-making strategies.

4. Utility Maximization: Individuals seek to choose options that provide the greatest benefit or satisfaction, weighing the costs and benefits of each choice to achieve their personal goals.