Decision Theory in the Presence of Uncertainty and Risk (original) (raw)

2005, Quelle: HHL-Arbeitspapier

AI-generated Abstract

This paper explores the foundational challenges of the expected utility hypothesis in decision theory, particularly in contexts of uncertainty and risk. It highlights the empirical violations and paradoxes that have tested the hypothesis's validity, and it proposes a refined decision-theoretic framework analogous to quantum mechanics, which maintains mathematical tractability while addressing these issues. The framework is shown to accommodate a broader class of preferences, confirming that finite games still possess Nash equilibria even under the introduction of subjective uncertainty.

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