decision theory
Definition
Framework of logical and mathematical concepts, aimed at helping managers in formulating rules that may lead to a most advantageous course of action under the given circumstances. Decision theory divides decisions into three classes (1) Decisions under certainty: where a manager has far too much information to choose the best alternative. (2) Decisions under conflict: where a manager has to anticipate moves and counter-moves of one or more competitors. (3) Decisions under uncertainty: where a manager has to dig-up a lot of data to make sense of what is going on and what it is leading to. See also game theory.
decision theory is in the Decision Making, Problem Solving, & Strategy, Information & Knowledge Management and Statistics, Mathematics, & Analysis subjects.
decision theory appears in the definitions of the following terms:
maximin criterion,
positive sum game,
maximum likelihood criterion,
zero sum game,
negative sum game,
maximax criterion,
equal likelihood criterion,
expected value maximization principle,
event uncertainty,
decision support system (DSS)
and
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