This chapter delves into the psychology of decision making, examining the diverse factors that influence how choices are made. It begins with an introduction to decision-making theories, tracing their historical evolution and highlighting key frameworks like Rational Choice Theory, Behavioral Economics, and Dual-Process Theories. Cognitive aspects such as heuristics, biases, and information processing are explored, alongside the impact of emotions and social influences. Environmental and contextual factors, including physical cues and situational contexts, are analyzed for their role in shaping decisions. Practical applications are considered, providing strategies for improving individual and organizational decision making.
