Mathematical Statistics: A Decision Theoretic Approach

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Main article: Intertemporal choice. Main article: Heuristic.

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Statistical Decision Theory | SpringerLink

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Archived from the original PDF on July 5, Khemani, Karan, Ignorance is Bliss: A study on how and why humans depend on recognition heuristics in social relationships, the equity markets and the brand market-place, thereby making successful decisions , Leach, Patrick A rational presentation of probabilistic analysis.

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Decision theory

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Statistical Decision Theory

Pfanzagl, J. Baumann and H.

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Huber Theory of Measurement. Morgenstern, Oskar In Andrew Schotter ed. Selected Economic Writings of Oskar Morgenstern. It differentiates between simultaneous move and imperfect information. The Bayesian theory of games treats sequential move with imperfect information as a special case of sequential move with observational noise term. When the variance of the noise term approaches its maximum such that the observation contains no informational value, there is imperfect information with sequential move. It treats games with complete and perfect information as special cases of games with incomplete information and noisy observation whereby the variance of the prior distribution function on type and the variance of the observation noise term tend to zero.


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Consequently, there is the issue of indeterminacy in statistical inference and decision making in these games as the equilibrium solution depends on which variances tends to zero first. It therefore identifies equilibriums in these games that have so far eluded the classical theory of games. Aumann, R. Arrow and S.

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Honkapohja eds. Berger, J. Bickel, P. Dixit, A. Game of Strategy. Fudenberg, D. Reputation and equilibrium selection in games with a patient player, Econometrica, 57, Harsanyi, J.