The rest of the course
Subtleties involved with maximizing expected utility: Finding the right state space: The wrong state space leads to intuitively incorrect answers when conditioning Taking causality into account If you don't, again you have
Decision theory is about making choices It has a normative aspect what "rational" people should do . . . and a descriptive aspect what people do do Not surprisingly, it's been studied by economists, psychologist, and philosophers.
Suppose you have to eat at a restaurant and your choices are: chicken Normally you prefer chicken to quiche, but . . . Now you're uncertain as to whether the chicken has salmonella. You think it's unlikely, but it's possible. Ke
October 26, 2006
VnM Expected Utility: There is a state space S (which, for the moment only, is finite) and an objective probability distribution p on S. There is also a set O of outcomes. An act is a map f : S O. A prefer
September 1, 2006
Note: The marked exercises are not (yet) homework assignments. They are additional things I thought it would amuse you to think about.
What is an Ordinal Representation?
We are given a preference order