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Relevant alternatives theory (RAT) is an epistemological theory of knowledge, according to which to know some proposition p one must be able to rule out all the relevant alternatives to p. Introduction
The mythological Judgement of Paris required selecting from three incomparable alternatives (the goddesses shown).. Decision theory or the theory of rational choice is a branch of probability, economics, and analytic philosophy that uses the tools of expected utility and probability to model how individuals would behave rationally under uncertainty.
Rational choice modeling refers to the use of decision theory (the theory of rational choice) as a set of guidelines to help understand economic and social behavior. [1] [2] The theory tries to approximate, predict, or mathematically model human behavior by analyzing the behavior of a rational actor facing the same costs and benefits.
Regret theory models choice under uncertainty taking into account the effect of anticipated regret. Subsequently, several other authors improved upon it. [4] It incorporates a regret term in the utility function which depends negatively on the realized outcome and positively on the best alternative outcome given the uncertainty resolution. This ...
The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance. Choice-supportive bias is potentially related to the aspect of cognitive dissonance explored by Jack Brehm (1956) as postdecisional dissonance. Within the context of cognitive dissonance, choice-supportive bias would be seen as reducing the ...
"the modern theory of rational behaviour under risk and uncertainty, usually described as Bayesian decision theory." Harsanyi rejects hedonistic utilitarianism as being dependent on an outdated psychology saying that it is far from obvious that everything we do is motivated by a desire to maximize pleasure and minimize pain. He also rejects ...
As an alternative, Hilbig et al. proposed to test the recognition heuristic more precisely devised a multinomial processing tree model for the recognition heuristic. A multinomial processing tree model is a simple statistical model often used in cognitive psychology for categorical data . [ 26 ]
In decision theory, the Ellsberg paradox (or Ellsberg's paradox) is a paradox in which people's decisions are inconsistent with subjective expected utility theory. John Maynard Keynes published a version of the paradox in 1921. [1] Daniel Ellsberg popularized the paradox in his 1961 paper, "Risk, Ambiguity, and the Savage Axioms". [2]