Decision Theory

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4 domain-specific abstractions whose origin domain is Decision Theory.

• Friedman–Savage utility function — A wealth-dependent expected-utility curve with alternating concave and convex regions intended to explain simultaneous insurance purchase and lottery play.
• Partially observable Markov decision process — A sequential decision model with Markovian hidden states, stochastic observations and actions chosen from observation histories or belief-state probability distributions.
• Pignistic probability — A decision probability obtained from a belief function by distributing each focal set's mass equally among its members when a single probabilistic choice is required.
• Sure-thing principle — A decision principle requiring the same action when it is preferred both conditional on an event and conditional on its complement.