Re: [Talk] decision theory
rational choice theory
http://plato.stanford.edu/entries/economics/#5
individual rationality:
the barebones theory of rationality takes the agent's preferences
(rankings of objects of choice) to be rational if they are complete and
transitive
collective rationality and social choice
although societies are very different from individuals, they evaluate
alternatives and make choices, which may be rational or irrational.
game theory
when outcomes depend on what several agents do, one agent's best choice
may depend on what other agents choose. although the principles of
rationality governing individual choice still apply, arguably there are
further principles of rationality governing expectations of the actions
of others
--
http://en.wikipedia.org/wiki/Rational_choice_theory
rational choice theory makes two assumptions about individuals' preferences
for actions:
completeness:all actions can be ranked in an order of preference
transitivity:if action a1 is preferred to a2, and action a2 is preferred
to a3, then a1 is preferred to a3
other assumptions:
an individual has full or perfect information about exactly what will occur
under any choice made
an individual has the cognitive ability and time to weigh every choice
against every other choice
--
http://en.wikipedia.org/wiki/Rationality
the German sociologist Max Weber proposed an interpretation of social action
that distinguished between four different types of rationality. the first,
which he called Zweckrational or purposive/instrumental rationality, is
related to the expectations about the behavior of other human beings or
objects in the environment. these expectations serve as means for a particular
actor to attain ends, ends which Weber noted were "rationally pursued and
calculated." the second type, Weber called Wertrational or value/belief-
oriented. Here the action is undertaken .......
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