Mini course/Tutorial on Questions in Decision Theory with Itzhak Gilboa
2011-09-20 at 09:15
2011-09-20 at 12:00
Mini course/Tutorial on "Questions in Decision Theory"
Itzhak Gilboa, Tel Aviv University
The tutorial will focus on some of the main questions that decision theory faces today. In particular, we will discuss the notions of rationality, probability, and utility.
A new definition of rationality is discussed, with a refinement of the notion to objective and subjective rationality. These terms are related to objective and subjective probability, and to classical and Bayesian statistics. The Bayesian paradigm is discussed more generally, focusing on the way it is applied in economic theory. Weaknesses of this approach as a standard of rationality will be discussed, as well as alternative approaches in decision theory.
The question of generation of belief and the definition of objective probabilities is discussed next. An axiomatic case-based approach is presented, and its limitations are discussed.
Finally, the notion of utility and its relationship to well-being and happiness will be briefly reviewed