Decision Theory

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Decision theory


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Decision theory  is the study of an agents choices. Decision theory can be broken into two branches: nominative decision theory, which analyzes the outcomes of decisions or determines the optimal decisions given constraints and assumptions, and descriptive decision theory, which analyzes   how agents actually make the decisions they do.

Decision theory is closely related to the field of  game theory and is an interdisciplinary topic, studied by economists, statisticians, data scientists, psychologists, biologists,. political and other social scientists, philosophers and computer scientists.

Empirical applications of this rich theory are usually done with the help of statistical and econometric methods.

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