decision theory
branch of applied probability theory
bounded rationality
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
game theory
branch of mathematics focused on strategic decision making
regret theory
economics model which includes a regret term in the utility function
prospect theory
theory of behavioral economics and behavioral finance that was developed by Daniel Kahneman and Amos Tversky in 1979
causal decision theory
school of thought within decision theory
expected utility hypothesis
hypothesis that the subjective value of a gamble is the statistical expectation of one’s valuations (which may differ from dollar values) of the gamble’s outcomes
evidential decision theory
a school of thought within decision theory that favors a choice that gives one the best expectations for the outcome, instead of a causal connection with the desirable outcome