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General Framework, Objective Function, and Probability

  • Christian D. SchadeEmail author
Chapter

Abstract

A step towards theory development in the decision sciences will be taken in chapters 8-10 (Part III of the book). These closely intertwined chapters discuss challenges that the multiverse perspective (built up in chapters  2 4) might pose for that discipline. In a singular universe, a rational decision maker is supposed to choose the alternative with the highest expected utility. How could one translate this concept into the multiverse, is this straightforward, what are the required changes? Chapter  8 investigates this question for the general framework of normative decision theory as well as for the aspect of probability. Interestingly, not much has to be changed with respect to probability (partially addressed in a box), but the general framework is seriously affected by having to replace singular outcomes with vectorial outcomes. Indeed, the concept of vectorial choice, underlying the development in all remaining chapters of the book, will be introduced and discussed in this chapter. Normative decision theory will also be confronted with results from behavioral decision theory as well as the alternative framework of the effectuation principle (Sarasvathy 2001) that turns out to have some advantages for usage and further development in the multiverse.

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.School of Business and EconomicsHumboldt University of BerlinBerlinGermany

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