Rational decisions /
Author / Creator: | Binmore, K. G., 1940- |
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Imprint: | Princeton : Princeton University Press, ©2009. |
Description: | 1 online resource (x, 200 pages) : illustrations |
Language: | English |
Series: | The Gorman lectures in economics Gorman lectures in economics. |
Subject: | |
Format: | E-Resource Book |
URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/11243813 |
Summary: | 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, Rational Decisions clearly explains the foundations of Bayesian decision theory and shows why Savage restricted the theory's application to small worlds. |
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Physical Description: | 1 online resource (x, 200 pages) : illustrations |
Bibliography: | Includes bibliographical references (pages 189-196) and index. |
ISBN: | 9781400833092 1400833094 9786612457944 6612457945 9780691130743 0691130744 9780691149899 1282457942 9781282457942 9786612936005 6612936002 |