By Itzhak Gilboa, David Schmeidler
Gilboa and Schmeidler supply a brand new paradigm for modeling choice making below uncertainty. Case-based determination concept means that humans make judgements by means of analogies to prior instances: they have a tendency to decide on acts that played good long ago in related events, and to prevent acts that played poorly. The authors describe the final conception and its courting to making plans, repeated selection difficulties, inductive inference, and studying. They spotlight its mathematical and philosophical foundations and examine it to anticipated software idea in addition to to rule-based systems.
"This textual content is a wonderful advent to optimization theory." Richard A. Chechile, magazine of Mathematical Psychology
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Additional resources for A Theory of Case-Based Decisions
Each state “resolves all uncertainty”, and, in particular, attaches a result to each available act. By contrast, in case-based decision theory the memory contains only those cases that actually happened. Correspondingly, the utility values that are used in (∗) are only those that were actually experienced. To apply EUT one needs to engage in hypothetical reasoning, namely to consider all possible states and the outcome that would result from each act in each state. To apply CBDT, no hypothetical reasoning is required.
Two Bayesian statisticians may have the same subjective prior, but if they are about to meet a third one, they have no way to convince her to agree with their prior. 12 One may argue that our deﬁnition of objectivity again resorts to agreement among subjective judgments, only that the latter should include all hypothetical judgments made by various individuals at various times and at various states of the world. , will have a common prior, in practice, if this prior conveys minimal information (say, a uniform prior when it is well-deﬁned).
3 Meta-theoretical prejudices This section expresses our views on certain issues relating to the state of the art in decision theory as well as to its applications to economics and to other social sciences. These views undoubtedly correlate with our motivation for developing case-based decision theory. Yet, as we explain below, the theory may be suggested and evaluated independently of our prejudices. 1 Preliminary remark on the philosophy of science Analytical philosophy is a science, in the sense that the social sciences are.