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Rational Decisions (The Gorman Lectures in Economics, 4) by Binmore, Ken. G is a nonfiction available to read on EtoBox.

What is Rational Decisions (The Gorman Lectures in Economics, 4) about?

<p>It is widely held that Bayesian decision theory is the final word on how a rational person should make decisions. However, Leonard Savage—the inventor of Bayesian decision theory—argued that it would be ridiculous to use his theory outside the kind of small world in which it is always possible to "look before you leap." If taken seriously, this view makes Bayesian decision theory inappropriate for the large worlds of scientific discovery and macroeconomic enterprise. When is it correct to use Bayesian decision theory—and when does it need to be modified? Using a minimum of mathematics, <i>Rational Decisions</i> clearly explains the foundations of Bayesian decision theory and shows why Savage restricted the theory's application to small worlds.</p> <p>The book is a wide-ranging exploration of standard theories of choice and belief under risk and uncertainty. Ken Binmore discusses the various philosophical attitudes related to the nature of probability and offers resolutions to paradoxes believed to hinder further progress. In arguing that the Bayesian approach to knowledge is inadequate in a large world, Binmore proposes an extension to Bayesian decision theory—allowing the idea

Who reads Rational Decisions (The Gorman Lectures in Economics, 4)?

Author

Binmore, Ken. G

Publisher

Princeton University Press

Published

2011

Language

EN

ISBN

9780691130743

Category

nonfiction

Subjects

Economics, Business, Mathematics