Essentials of Decision Making under Generalized Uncertainty1
نویسنده
چکیده
One of the essential characteristics of a decision-making situation is the amount and quality of information that the decision maker has available at the onset of the problem. Luce and Raiffa [1958, p.13] developed a three-tiered classification of decision making based on the amount of knowledge, or information, possessed by the decision maker. If full knowledge regarding options, outcomes, and the various states of the world is available, the task of making a decision becomes a straightforward process of selecting the action whose outcome maximizes the decision criteria. Completely deterministic problems of this nature are classified as "decision making under certainty". The solution procedure involves the evaluation and optimization of the decision criteria, such as maximizing a utility function or minimizing a loss function.
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