Related papers: Surreal Decisions
That science and other domains are now largely data-driven means virtually unlimited opportunities for statisticians. With great power comes responsibility, so it's imperative that statisticians ensure that the methods being developing to…
In the gambling foundation of probability theory, rationality requires that a subject should always (never) find desirable all nonnegative (negative) gambles, because no matter the result of the experiment the subject never (always)…
Following the work of Lloyd Shapley on the Shapley value, and tangentially the work of Guillermo Owen, we offer an alternative non-probabilistic formulation of part of the work of Robert J. Weber in his 1978 paper "Probabilistic values for…
We consider the theory of algebraically closed fields of characteristic zero with multivalued operations $x\mapsto x^r$ (raising to powers). It is in fact the theory of equations in exponential sums. In an earlier paper we have described…
Random utility theory models an agent's preferences on alternatives by drawing a real-valued score on each alternative (typically independently) from a parameterized distribution, and then ranking the alternatives according to scores. A…
Critics object that the Everett view cannot make sense of quantum probabilities, in one or both of two ways: either it cannot make sense of probability at all, or it cannot explain why probability should be governed by the Born rule. David…
The theory of combinatorial game (like board games) and the theory of social games (where one looks for Nash equilibria) are normally considered as two separate theories. Here we shall see what comes out of combining the ideas. The central…
We present a novel variant of decision making based on the mathematical theory of separable Hilbert spaces. This mathematical structure captures the effect of superposition of composite prospects, including many incorporated intentions,…
The famous Saint Petersburg Paradox (St. Petersburg Paradox) shows that the theory of expected value does not capture the real-world economics of decision-making problems. Over the years, many economic theories were developed to resolve the…
We make a number of observations on Conway surreal number theory which may be useful, for further developments, in both in mathematics and theoretical physics. In particular, we argue that the concepts of surreal numbers and matroids can be…
The laws of chance are often subtle and deceptive. This is why games of chance work. People are convinced that they obey seemingly intuitive laws, while the underlying mathematical structure reveals a different and more complex reality.…
Many researchers have applied classical statistical decision theory to evaluate treatment choices and learn optimal policies. However, because this framework is based solely on realized outcomes under chosen decisions and ignores…
The dominant theories of rational choice assume logical omniscience. That is, they assume that when facing a decision problem, an agent can perform all relevant computations and determine the truth value of all relevant logical/mathematical…
Although many investigators affirm a desire to build reasoning systems that behave consistently with the axiomatic basis defined by probability theory and utility theory, limited resources for engineering and computation can make a complete…
Game theory relies heavily on the availability of cardinal utility functions, but in fields such as matching markets, only ordinal preferences are typically elicited. The literature focuses on mechanisms with simple dominant strategies, but…
Motivated by several classic decision-theoretic paradoxes, and by analogies with the paradoxes which in physics motivated the development of quantum mechanics, we introduce a projective generalization of expected utility along the lines of…
Computation plays a major role in decision making. Even if an agent is willing to ascribe a probability to all states and a utility to all outcomes, and maximize expected utility, doing so might present serious computational problems.…
The aim of this of this paper is to study infinite games and to prove formally some properties in this framework. As a consequence we show that the behavior (the madness) of people which leads to speculative crashes or escalation can be…
In this paper we extend Savage's theory of decision-making under uncertainty from a classical environment into a non-classical one. We formulate the corresponding axioms and provide representation theorems for qualitative measures and…
This paper uses decision-theoretic principles to obtain new insights into the assessment and updating of probabilities. First, a new foundation of Bayesianism is given. It does not require infinite atomless uncertainties as did Savage s…