Decision Theory

All of human life may be seen as a process of decision-making, but it is only in recent years and in response to the needs of the large and complex organizations characterizing our society that this process has been subjected to scientific scrutiny. Out of this scrutiny--undertaken by a wide range of professionals in economics, administration, management, statistics, psychology, engineering, computer science, operations research, and systems analysis--there has begun to emerge a body of theory that has profound implications for improving practical decision-making. This book is the first to bring together all the various aspects of decision theory into one cohesive treatment, focusing on the meaning of "best" decisions and how "best" can be attained in practice. Professor White deals generally with the two major aspects of decision-making: uncertainty and utility (values), and how-using statistical theory, utility theory, game theory, and all the other components that go into decision theory- these can be measured and brought together into effective decision-making criteria. Particular attention is given to problems of knowledge and to the general place of information theory in decision-making; to the notion of "measurability" in this context; to the differences between the physical and human sciences, showing the scope for scientific method in seeking better decision making; and to problem-solving behavior and the problem environment, since these are vital aspects in the practical application of decision theory. Uniquely synthesizing the various aspects of contemporary decision theory, the book clearly and coherently illuminates the very subtle concepts of "better" decision-making. Its focus on the implications of theory for practical decisions will make the book a basic tool for professors and practitioners of operations research, management science, systems analysis, computer sciences, and other fields; and as the first basic text dealing with this subject, it will be widely used for advanced undergraduate and graduate courses on decision theory in departments of economics, statistics, and psychology, and in schools of business and engineering.