What is the primary distinction between normative and descriptive decision-making?

The primary distinction between normative and descriptive decision-making lies in their focus and application. Normative decision-making refers to an idealized model that outlines how decisions should be made to achieve optimal outcomes, emphasizing principles of rationality and efficiency. It represents a standard against which actual decisions can be measured, essentially providing a framework for what constitutes the "ideal" decision-making process.

On the other hand, descriptive decision-making examines how decisions are actually made in practice. It is grounded in real-world scenarios, capturing the behaviors, biases, and influences that affect decision-making. This approach recognizes that human decisions are often influenced by emotions, social dynamics, and cognitive limitations, which can diverge from the ideal given by normative theories.

By understanding this distinction, one can appreciate how normative models aim to guide behavior towards the best possible choices, while descriptive models provide insights into the complexities of real-world decision-making.