PSYCH 4508 Lecture Notes - Lecture 2: Expected Utility Hypothesis, Decision Rule, Psych

• School: Ohio State University
• Department: Psychology
• Course: PSYCH 4508
• Professor: Miller Seth

Document Summary

Lecture: august 29 & 31: what is a decision, there is more than one possible course of action in the choice set , the decision maker can form expectations concerning future outcomes following each action. Can be fuzzy or uncertain: outcomes can be evaluated. Can also be fuzzy or uncertain: this definition seems to include just about everything. Example: if i go to college, i will get a better job. Example: i will feel pretty bad if i get soaked by the rain. Example: i will feel great if i get my dream job. Utility = subjective (personal) value of a potential outcome. Rationality: a starting point: one model of rationality (a consequentialist view) Choices should be based on the decision maker"s current assets (broadly defined) Decisions should be based on all possible outcomes of the choice and how good or bad those outcomes would be.