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Decision Theory
A Brief Introduction
1994-08-19
Minor revisions 2005-08-23
Sven Ove Hansson
Department of Philosophy and the History of Technology
Royal Institute of Technology (KTH)
Stockholm
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Contents
Preface ..........................................................................................................4
1. What is decision theory? ..........................................................................5
1.1 Theoretical questions about decisions .........................................5
1.2 A truly interdisciplinary subject...................................................6
1.3 Normative and descriptive theories..............................................6
1.4 Outline of the following chapters.................................................8
2. Decision processes....................................................................................9
2.1 Condorcet .....................................................................................9
2.2 Modern sequential models ...........................................................9
2.3 Non-sequential models.................................................................10
2.4 The phases of practical decisions – and of decision theory.........12
3. Deciding and valuing................................................................................13
3.1 Relations and numbers .................................................................13
3.2 The comparative value terms .......................................................14
3.3 Completeness ...............................................................................16
3.4 Transitivity ...................................................................................17
3.5 Using preferences in decision-making.........................................19
3.6 Numerical representation .............................................................20
3.7 Using utilities in decision-making ............................