IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y2007i86p25-41.html
   My bibliography  Save this article

Rational Decisions in Large Worlds

Author

Listed:
  • Ken Binmore

Abstract

This paper argues that we need to look beyond Bayesian decision the, for an answer to the general problem of making national decision under uncertainty. The view that Bayesian decision theory is only genuinely valid in a small world was asserted very firmly by SAVAGE [1951] when laying down the principles of the theory in his path - breaking Foundations of Statistics. He makes the distinction between small and large worlds in a folksy way by quoting the proverbs "Look before you leap" and "Cross that bridge when you corne to it". You are in a small world if it is feasible always to look before you leap. You are in a large world if there are some bridges that you cannot cross before you corne to them.

Suggested Citation

  • Ken Binmore, 2007. "Rational Decisions in Large Worlds," Annals of Economics and Statistics, GENES, issue 86, pages 25-41.
    • Handle: RePEc:adr:anecst:y:2007:i:86:p:25-41
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/20079192
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Naudé, Wim, 2023. "Artificial Intelligence and the Economics of Decision-Making," IZA Discussion Papers 16000, Institute of Labor Economics (IZA).
    2. Shyam Sunder, 2015. "Risk in Accounting," Abacus, Accounting Foundation, University of Sydney, vol. 51(4), pages 536-548, December.
    3. Guilhem Lecouteux, 2020. "Welfare Economics in Large Worlds: Welfare and Public Policies in an Uncertain Environment," GREDEG Working Papers 2020-08, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Lutz Bornmann & Julian N. Marewski, 2019. "Heuristics as conceptual lens for understanding and studying the usage of bibliometrics in research evaluation," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(2), pages 419-459, August.
    5. Ladley, Daniel & Lensberg, Terje & Palczewski, Jan & Schenk-Hoppé, Klaus Reiner, 2015. "Fragmentation and stability of markets," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 466-481.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2007:i:86:p:25-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.