Search results
Results from the WOW.Com Content Network
Decision theory or the theory of rational choice is a branch of probability, economics, and analytic philosophy that uses the tools of expected utility and probability to model how individuals would behave rationally under uncertainty.
The most common decision problems are basic database-query-like questions like instance checking (is a particular instance (member of an ABox) a member of a given concept) and relation checking (does a relation/role hold between two instances, in other words does a have property b), and the more global-database-questions like subsumption (is a ...
Decision theory can be broken into two branches: normative decision theory, which gives advice on how to make the best decisions given a set of uncertain beliefs and a set of values, and descriptive decision theory which analyzes how existing, possibly irrational agents actually make decisions. decision tree learning
In decision theory, the Ellsberg paradox (or Ellsberg's paradox) is a paradox in which people's decisions are inconsistent with subjective expected utility theory. John Maynard Keynes published a version of the paradox in 1921. [1] Daniel Ellsberg popularized the paradox in his 1961 paper, "Risk, Ambiguity, and the Savage Axioms". [2]
In the philosophy of economics, economics is often divided into positive (or descriptive) and normative (or prescriptive) economics. Positive economics focuses on the description, quantification and explanation of economic phenomena, [ 1 ] while normative economics discusses prescriptions for what actions individuals or societies should or ...
In behavioral economics, cumulative prospect theory (CPT) is a model for descriptive decisions under risk and uncertainty which was introduced by Amos Tversky and Daniel Kahneman in 1992 (Tversky, Kahneman, 1992).
There are three components in the psychology field that are seen as crucial to the development of a more accurate descriptive theory of decision under risks. [25] [30] Theory of decision framing effect (psychology) Better understanding of the psychologically relevant outcome space; A psychologically richer theory of the determinants
Decision analysis (DA) is the discipline comprising the philosophy, methodology, and professional practice necessary to address important decisions in a formal manner. . Decision analysis includes many procedures, methods, and tools for identifying, clearly representing, and formally assessing important aspects of a decision; for prescribing a recommended course of action by applying the ...