DECISION SCIENCE

11.1

Daniel Bernoulli’s Legacy

From normative to descriptive theories of choice.

Mathematicians first formalized how humans should make decisions using probability theory. But they eventually discovered the need to understand how people deviate from normative principles. The decision sciences - in particular, economics and psychology - have since been involved in a debate about the proper way to capture individuals’ choices by linking formal theory to experimental results and striking a balance between normative and descriptive theories of choice.

Lizenz

University of Basel