Decision theory

systematic pattern of deviation from norm or rationality in judgment due to subjective perception of reality

branch of applied probability theory

sociological theory

Minimax (sometimes Minmax, MM or saddle point) is a decision rule used in artificial intelligence, decision theory, combinatorial game theory, statistics, and philosophy for minimizing the possible loss for a worst case (maximum loss) scenario. When dealing with gains, it is referred to as "maximin" – to maximize the minimum gain. Originally formulated for several-player zero-sum game theory, covering both the cases where players take alternate moves and those where they make simultaneous moves, it has also been extended to more complex games and to general decision-making in the presence of u

academic discipline

statistical algorithm that is used to cluster points of data in functional groups

actor and decision maker in an economic model

cost that has already been incurred and cannot be recovered

theory of behavioral economics and behavioral finance that was developed by Daniel Kahneman and Amos Tversky in 1979

preference against risk, a common human behavior of attempting to lower uncertainty and avoid risk

the idea that rationality is limited by the tractability of the decision problem, the cognitive limitations of the mind, and the time available to make the decision

structured technique for organizing and analyzing complex decisions, based on mathematics and psychology

people's tendency to prefer avoiding losses to acquiring equivalent gains, a behavior first identified by Amos Tversky and Daniel Kahneman

actions in the present which are constrained by actions in the past

theory of organizational decison-making

phenomenon in marketing

mathematical problem

tendency to believe false information when repeated

design of ways of presentation of choices to consumers and their impact to consumer decision-making

the process by which people make decisions about what and how much to do at various points in time, when choices at one time influence the possibilities available at other points in time

Satisficing is a decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met, without necessarily maximizing any specific objective. The term satisficing, a portmanteau of satisfy and suffice, was introduced by Herbert A. Simon in 1956, although the concept was first posited in his 1947 book Administrative Behavior. Simon used satisficing to explain the behavior of decision makers under circumstances in which an optimal solution cannot be determined. He maintained that many natural problems are characterized

decision-making process used by consumers before, during, and after the purchase of a good or service

phenomenon that making an option the default increases the likelihood that it is chosen

Overchoice or choice overload is the paradoxical phenomenon that choosing between a large variety of options can be detrimental to decision making processes. The term was first introduced by Alvin Toffler in his 1970 book, Future Shock.

in probability theory, a rule for assigning epistemic probabilities

method of making decisions based on insufficient or fuzzy information

amount in information economics

Economic model

application of quantum mechanics to cognitive phenomena

theorem that a rational decision-maker has a utility function

Approach for analyzing public policymaking processes

model for decision analysis

theory about how groups of reasonably bright individuals should and could make joint, collaborative decisions

confidently predicting inaccurate outcomes based on the representativeness of available data

economics model which includes a regret term in the utility function