Theory of Decision under Uncertainty

Business & Finance, Economics, Microeconomics, Nonfiction, Science & Nature, Mathematics
Cover of the book Theory of Decision under Uncertainty by Itzhak Gilboa, Cambridge University Press
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Author: Itzhak Gilboa ISBN: 9781107779051
Publisher: Cambridge University Press Publication: March 16, 2009
Imprint: Cambridge University Press Language: English
Author: Itzhak Gilboa
ISBN: 9781107779051
Publisher: Cambridge University Press
Publication: March 16, 2009
Imprint: Cambridge University Press
Language: English

This book describes the classical axiomatic theories of decision under uncertainty, as well as critiques thereof and alternative theories. It focuses on the meaning of probability, discussing some definitions and surveying their scope of applicability. The behavioral definition of subjective probability serves as a way to present the classical theories, culminating in Savage's theorem. The limitations of this result as a definition of probability lead to two directions - first, similar behavioral definitions of more general theories, such as non-additive probabilities and multiple priors, and second, cognitive derivations based on case-based techniques.

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This book describes the classical axiomatic theories of decision under uncertainty, as well as critiques thereof and alternative theories. It focuses on the meaning of probability, discussing some definitions and surveying their scope of applicability. The behavioral definition of subjective probability serves as a way to present the classical theories, culminating in Savage's theorem. The limitations of this result as a definition of probability lead to two directions - first, similar behavioral definitions of more general theories, such as non-additive probabilities and multiple priors, and second, cognitive derivations based on case-based techniques.

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