Decision theory

Decision theory (or the theory of choice not to be confused with choice theory) is the study of an agent's choices.[1] Decision theory can be broken into two branches: normative decision theory, which analyzes the outcomes of decisions or determines the optimal decisions given constraints and assumptions, and descriptive decision theory, which analyzes how agents actually make the decisions they do.

Decision theory is closely related to the field of game theory[2] and is an interdisciplinary topic, studied by economists, mathematicians, data scientists, psychologists, biologists,[3] political and other social scientists, philosophers[4] and computer scientists.

Empirical applications of this theory are usually done with the help of statistical and econometric methods.


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