A Theory of Bayesian Decision Making
AbstractThis paper presents a complete, choice-based, axiomatic Bayesian decision theory. It introduces a new choice set consisting of information-contingent plans for choosing actions and bets and subjective expected utility model with effect-dependent utility functions and action-dependent subjective probabilities which, in conjunction with the updating of the probabilities using Bayes' rule, gives rise to a unique prior and a set of action-dependent posterior probabilities representing the decision maker's prior and posterior beliefs.
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Bibliographic InfoPaper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number 550.
Date of creation: May 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-23 (All new papers)
- NEP-GTH-2009-05-23 (Game Theory)
- NEP-HPE-2009-05-23 (History & Philosophy of Economics)
- NEP-UPT-2009-05-23 (Utility Models & Prospect Theory)
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