An examination of topics involved in statistical reasoning with imprecise probabilities. The book discusses assessment and elicitation, extensions, envelopes and decisions, the importance of imprecision, conditional previsions and coherent statistical models.

"The best book available for non-mathematicians." — Contemporary Psychology. Superb nontechnical introduction to game theory and related disciplines, primarily as applied to the social sciences. Clear, comprehensive coverage of utility theory, 2-person zero-sum games, 2-person non-zero-sum games, n-person games, individual and group decision-making, much more. Appendixes. Bibliography. Graphs and figures.

Role of the entrepreneur in a distinct role of profit.

This book presents the definitive exposition of 'prospect theory', a compelling alternative to the classical utility theory of choice. Building on the 1982 volume, Judgement Under Uncertainty, this book brings together seminal papers on prospect theory from economists, decision theorists, and psychologists, including the work of the late Amos Tversky, whose contributions are collected here for the first time. While remaining within a rational choice framework, prospect theory delivers more accurate, empirically verified predictions in key test cases, as well as (...) helping to explain many complex, real-world puzzles. In this volume, it is brought to bear on phenomena as diverse as the principles of legal compensation, the equity premium puzzle in financial markets, and the number of hours that New York cab drivers choose to drive on rainy days. Theoretically elegant and empirically robust, this volume shows how prospect theory has matured into a new science of decision making. (shrink)

This is the classic work upon which modern-day game theory is based. What began as a modest proposal that a mathematician and an economist write a short paper together blossomed, when Princeton University Press published Theory of Games and Economic Behavior. In it, John von Neumann and Oskar Morgenstern conceived a groundbreaking mathematical theory of economic and social organization, based on a theory of games of strategy. Not only would this revolutionize economics, but the entirely new field of scientific inquiry (...) it yielded--game theory--has since been widely used to analyze a host of real-world phenomena from arms races to optimal policy choices of presidential candidates, from vaccination policy to major league baseball salary negotiations. And it is today established throughout both the social sciences and a wide range of other sciences. (shrink)

Classic analysis of the subject and the development of personal probability; one of the greatest controversies in modern statistcal thought.

The following values have no corresponding Zotero field: PB - JSTOR.

In (Hertwig et al. , 2003) Hertwig et al. draw a distinction between decisions from experience and decisions from description. In a decision from experience an agent does not have a summary description of the possible outcomes or their likelihoods. A career choice, deciding whether to back up a computer hard drive, cross a busy street, etc., are typical examples of decisions from experience. In such decisions agents can rely only of their encounters with the corresponding prospects. By contrast, an (...) agent furnished with information sources such as drug-package inserts or mutual-fund brochures—all of which describe risky prospects—will often make decisions from description. In (Hertwig et al. , 2003) it is shown (empirically) that decisions from experience and decisions from description can lead to dramatically different choice behavior. Most of these results (summarized and analyzed in (Hertwig, 2009)) are concerned with the role of risk in decision making. This article presents some preliminary results concerning the role of uncertainty in decision-making. We focus on Ellsberg’s two-color problem and consider a chance setup based on double sampling. We report empirical results which indicate that decisions from description where subjects select between a clear urn, the chance setup based on double sampling and Ellsberg’s vague urn, are such that subjects perceive the chance setup at least as an intermediate option between clear and vague choices (and there is evidence indicating that the double sampling chance setup is seen as operationally indistinguishable from the vague urn). We then suggest how the iterated chance setup can be used in order to study decisions from experience in the case of uncertainty. (shrink)