How do you decide? – Decision Theory and Uncertainty | with Itzhak Gilboa
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How do you decide? – Decision Theory and Uncertainty | with Itzhak Gilboa
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In this episode, we explore the foundations and evolution of decision theory. Our guest, Itzhak Gilboa, begins with a brief historical overview of how the field has developed over time. We naturally discuss maximising expected utility, Bayesian decision theory, and Savage's representation theorem. Itzhak then delves into critiques of the Bayesian approach, especially concerning its interpretation of what constitutes a "rational decision maker." He presents a range of alternative decision frameworks, including approaches that do not require individuals to specify a full subjective probability distribution.
Itzhak Gilboa is Professor of Economics and Decision Sciences at HEC Paris.
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