Final answer:
Nonrational decision-making is the process of making a decision in a risky environment without following a rational, calculating approach. This behavior contradicts the concept of rational decision-making.
Step-by-step explanation:
In the domain of decision-making in a risky environment, the term nonrational decision-making is applicable. Nonrational decision-making involves making choices without following a rational, calculating approach as described by the economic model. This means that individuals may not always measure utility and costs at the margin.
For instance, people sometimes make decisions that appear inconsistent or not in their best interest. They may ignore opportunities to save time or money, which goes against the rationality assumption. This behavior contradicts the concept of rational decision-making where the value of the perceived benefit should exceed the value of the perceived cost before taking an action.