Decision Theory

March 2026

• Mar 3, 2026ConceptsRisk vs Uncertainty: What People ConfuseRisk has known probabilities; uncertainty doesn't. With risk you can calculate odds, with uncertainty you can't even assign probabilities to outcomes.24 MIN42.0k

June 2025

• Jun 19, 2025ExplainersOrigins of Decision Theory: Key DevelopmentsDecision theory origins: Bernoulli introduced expected utility in 1738. Von Neumann and Morgenstern developed game theory and axioms of...40 MIN43.8k
• Jun 3, 2025ExplainersUsing Decision Theory in Everyday ChoicesApply decision theory: list all options, define outcomes for each, assign probabilities to outcomes, calculate expected values, then choose...51 MIN29.8k

December 2023

• Dec 7, 2023ConceptsWhat Is Game Theory? Strategy, Equilibrium, and Why PeopleGame theory is the mathematical study of strategic interaction. From the Prisoner's Dilemma to nuclear deterrence, this explainer covers Nash equilibria, cooperation, auctions, signaling, and why the theory changed economics, biology, and political science.18 MIN7.9k
• Dec 3, 2023ConceptsWhat Is Behavioral Economics? How Psychology Overturned the Rational ActorBehavioral economics combines psychology and economics to explain how people actually make decisions. This explainer covers prospect theory, loss aversion, nudge theory, cognitive biases, and why the rational actor model was wrong.18 MIN9.0k

November 2022

• Nov 26, 2022ConceptsWhat Is Behavioral Economics? Psychology and Decision-MakingBehavioral economics combines psychology and economics to explain how people actually make decisions.18 MIN3.3k