Decision Making

Decision theory is a field of research, which examines­­ decisions made by individuals, groups, and societies. It is customary to split the field into three categories: decision-making under conditions of certainty, decision-making under conditions of risk, and decision-making under conditions of uncertainty. Two main approaches can be found in the analysis of decision-making, the normative approach, and the positive approach. The normative approach offers an account of how agents should behave, aspiring to provide methods for improving decision-making, while the positive approach describes regularities in observed behavior in the effort to provide insights into human actions and predictions of peoples’ choices.