Decision theory
Economics, philosophy, and statistics
It examines principles for choosing among options when consequences and uncertainty matter.
Historical context
Formal decision theory developed in contact with probability, economics, and the philosophy of rationality.
Overview
Two options can offer the same likely outcome and differ greatly in risk. Analysis separates possible consequences, degrees of belief, and the value assigned to each outcome.
Main claims
Rational evaluation of options depends on how consequences, beliefs, and preferences are represented.
Debates and nuances
Normative and descriptive versions address different questions.
This entry provides educational context.