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decision theory

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decision theory

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Also known as theory of choice, decision sciences, decision science

branch of applied probability theory

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Decision theory
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Mathematics Portal v t e

The mythological Judgement of Paris required selecting from three incomparable alternatives (the goddesses shown). Decision theory or the theory of rational choice is a branch of probability, economics, and analytic philosophy that uses expected utility and probability to model how individuals would behave rationally under uncertainty. It differs from the cognitive and behavioral sciences in that it is mainly prescriptive and concerned with identifying optimal decisions for a rational agent, rather than describing how people actually make decisions. Despite this, the field is important to the study of real human behavior by social scientists, as it lays the foundations to mathematically model and analyze individuals in fields such as sociology, economics, criminology, cognitive science, moral philosophy and political science.

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