The theory of case-based decisions suggests that people make choices based on past experiences rather than calculating expected outcomes. This approach is used when uncertainty makes it difficult to determine all possible outcomes and probabilities. Decision makers tend to choose actions that have worked well in similar situations before and avoid those that have not. This theory provides an alternative to traditional decision-making models and is particularly useful in situations where outcomes and probabilities are unclear. It can be applied to planning, repeated choices, learning, and inductive reasoning.