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
decision theory in American English
noun
Statistics
the theory of making decisions based on assigning probabilities to various factors and assigning numerical consequences to the outcome
Word origin
[1960–65]This word is first recorded in the period 1960–65. Other words that entered Englishat around the same time include: bicycle kick, buyback, disco, tag question, zip code
Examples of 'decision theory' in a sentence
decision theory
Mathematical decision theory starts from the agent's preferences and beliefs.
The Times Literary Supplement (2017)
This is a deep issue, and one that decision theory cannot resolve.
The Times Literary Supplement (2015)
Normative decision theory tells us that we should choose the action that has the highest expected value.