decision theory

noun

, Statistics.

1. the theory of making decisions based on assigning probabilities to various factors and assigning numerical consequences to the outcome.

decision theory

noun

1. statistics the study of strategies for decision-making under conditions of uncertainty in such a way as to maximize the expected utility See also game theory

Word History and Origins

Origin of decision theory¹

First recorded in 1960–65

Example Sentences

"It is a decision theory in which the outcome does not depend on one's own decision alone, but also on the decision of the other actors," explained Ikerbasque Research Professor Annick Laruelle, an expert in game theory in the UPV/EHU's Department of Economic Analysis.

From Science Daily

We have notable women to thank for modern computation, revelations on the geometry of space, cornerstones of abstract algebra, and major advances in decision theory, number theory, and celestial mechanics that continue to provide crucial breakthroughs in applied areas like cryptography, computer science, and physics.

From Scientific American

Examples of terms that promise uncontested precision include: ‘cost–benefit’, ‘expected utility’, ‘decision theory’, ‘life-cycle assessment’, ‘ecosystem services’, and ‘evidence-based policy’.

From Nature

While intellectually stimulating, decision theory, econometrics, and similar courses left me feeling adrift.

From Literature

Most decisions are more complex than this, but the promise of decision theory is that there’s a formula for everything, from launching a raid in Abbottabad to digging an oil well in the North Sea.

From The New Yorker