A Theory of Case-Based Decisions
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Theory of Case-Based Decisions by Itzhak Gilboa
Book DescriptionGilboa and Schmeidler provide a paradigm for modelling decision making under uncertainty. Unlike the classical theory of expected utility maximization, case-based decision theory does not assume that decision makers know the possible 'states of the world' or the outcomes, let alone the decision matrix attaching outcomes to act-state pairs. Case-based decision theory suggests that people make decisions by analogies to past cases: they tend to choose acts that performed well in the past in similar situations, and to avoid acts that performed poorly. It is an alternative to expected utility theory when both states of the world and probabilities are neither given in the problem nor can be easily constructed. The authors describe the general theory and its relationship to planning, repeated choice problems, inductive inference, and learning; they highlight its mathematical and philosophical foundations and compare it with expected utility theory as well as with rule-based systems.
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Book DetailsISBN: 9780521802345
(216mm x 138mm x 16mm)
Imprint: Cambridge University Press
Publisher: Cambridge University Press
Publish Date: 26-Jul-2001
Country of Publication: United Kingdom
Books By Author Itzhak Gilboa
Analogies and Theories, Hardback (May 2015)
The book describes formal models of reasoning that are aimed at capturing the way that economic agents, and decision makers in general think about their environment and make predictions based on their past experience.
Rational Choice, Paperback (September 2012)» View all books by Itzhak Gilboa
A nontechnical, concise, and rigorous introduction to the rational choice paradigm, focusing on basic insights applicable in fields ranging from economics to philosophy.
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Author Biography - Itzhak Gilboa
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