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Prospect theory and liquidation decisions
Journal of Economic Theory, 2005We solve a liquidation problem for an agent with preferences consistent with the prospect theory of Kahneman and Tversky (1978). We find that the agent is willing to hold a risky project with a relatively inferior Sharpe ratio if the project is currently making losses, and intends to liquidate it when it breaks even.
Albert Kyle, Hui Ou-Yang, Wei Xiong
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An Introduction to Decision Theory
2009This introduction to decision theory offers comprehensive and accessible discussions of decision-making under ignorance and risk, the foundations of utility theory, the debate over subjective and objective probability, Bayesianism, causal decision theory, game theory, and social choice theory.
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Action theory as a resource for decision theory
Theory and Decision, 1986Many problems in decision theory intersect problems in action theory. But although this is widely realized, the connections between the two fields have rarely been systematically discussed in the literature. This essay will attempt to articulate some of those connections and a number of important problems they raise.
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Counterfactual Decision Theory Is Causal Decision Theory
Pacific Philosophical QuarterlyAbstractThe role of causation and counterfactuals in causal decision theory is vexed and disputed. Recently, Brian Hedden (2023) argues that we should abandon causal decision theory in favour of an alternative: counterfactual decision theory. I argue that, pace Hedden, counterfactual decision theory is not a competitor to, but rather a version of ...
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Standard Decision Theory Corrected
Synthese, 2000zbMATH Open Web Interface contents unavailable due to conflicting licenses.
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Decision Theory in Econometrics
2008The decision-theoretic approach to statistics and econometrics explicitly specifies a set of models under consideration, a set of actions available to the analyst, and a loss function (or, equivalently, a utility function) that quantifies the value to the decision-maker of applying a particular action when a particular model holds.
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Decision Theory and Real Decisions:
1999Decision theory has been extremely successful in various ways. As a theory per se, it has provided interesting research opportunities stemming from an elegant central core. It has served as a basis for identifying behavioral anomalies and then stimulated research into trying to incorporate explanations into a revised theory.
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