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Theory of decision under uncertainty
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ISBN: 9780521517324 9780521741231 0521741238 052151732X 9780511840203 1107779057 1107776643 0511840209 Year: 2009 Volume: 45 Publisher: Cambridge : Cambridge University Press,

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Abstract

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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