This book elaborates on a multidimensional model of
decision-making that applies to how individuals make "mundane
decisions." Decisions about pursuing relationships, exercise, work,
or anything where people might have to "invest" time or behavioral
effort are examples. The author utilizes cognitive-developmental
theory to understand how children and adolescents make sense of
economic inequality.
This modern portfolio theory model of decision-making applies
economic concepts to everyday life and may help us understand why
individuals differ in their willingness to take risks. It also
contributes to our knowledge of personality disorders such as
depression and mania.
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