Normative Decision Theory is a framework that helps individuals and organizations make rational choices by evaluating the best possible options based on certain criteria. It focuses on how decisions should be made to achieve the most favorable outcomes, often using mathematical models and logical reasoning. This theory emphasizes the importance of consistency and coherence in decision-making processes. The theory contrasts with descriptive decision-making approaches, which analyze how people actually make choices, often influenced by emotions and biases. Normative Decision Theory aims to provide guidelines for optimal decision-making, ensuring that choices align with defined goals and values, such as in fields like economics and psychology.