In Hal Pashler (ed.), Encyclopedia of the Mind. Sage Publications (2013)
AbstractDecision theory is concerned with how agents should act when the consequences of their actions are uncertain. The central principle of contemporary decision theory is that the rational choice is the choice that maximizes subjective expected utility. This entry explains what this means, and discusses the philosophical motivations and consequences of the theory. The entry will consider some of the main problems and paradoxes that decision theory faces, and some of responses that can be given. Finally the entry will briefly consider how decision theory applies to choices involving more than one agent.
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