Decision theory

<p>Decision theory or the theory of rational choice is a branch of <a href="/facts/Probability_theory/mFBn51rE">probability</a>, <a href="/facts/Economics/HYctA2Dn">economics</a>, and <a href="/facts/Analytic_philosophy/ALSWKaQa">analytic philosophy</a> that uses <a href="/facts/Expected_utility/EboBlw1D">expected utility</a> and <a href="/facts/Probabilities/fgYvMhwb">probability</a> to model how individuals would behave <a href="/facts/Rationality/ueS0w9lk">rationally</a> under <a href="/facts/Uncertainty/VM9pnGvk">uncertainty</a>. It differs from the <a href="/facts/Cognitive_science/8qoggl7r">cognitive</a> and <a href="/facts/Behavioural_sciences/bSak3jfx">behavioral sciences</a> in that it is mainly <a href="/facts/Prescriptive_economics/0e2Q7AIb">prescriptive</a> and concerned with identifying <a href="/facts/Optimal_decision/3qplyF1M">optimal decisions</a> for a <a href="/facts/Rational_agent/x5dJh18Q">rational agent</a>, rather than <a href="/facts/Descriptive_economics/0e2Q7AIb">describing</a> how people actually make decisions. Despite this, the field is important to the study of real human behavior by <a href="/facts/Social_science/hAbm1xtD">social scientists</a>, as it lays the foundations to <a href="/facts/Mathematical_model/CGhyuxgz">mathematically model</a> and analyze individuals in fields such as <a href="/facts/Sociology/d2Fd0N87">sociology</a>, <a href="/facts/Economics/HYctA2Dn">economics</a>, <a href="/facts/Criminology/vu3fwnut">criminology</a>, <a href="/facts/Cognitive_science/8qoggl7r">cognitive science</a>, <a href="/facts/Moral_philosophy/wNVNgL5q">moral philosophy</a> and <a href="/facts/Political_science/Gqy5EoRX">political science</a>.
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Decision theory open-in-new

Decision theory