Decision-making theory challenged: Are our choices truly rational?
The article explores decision-making when faced with different types of uncertainties. It discusses the Expected Utility Theory, which suggests that rational decision makers aim to maximize their expected "utility" based on their beliefs about the likelihood of different outcomes. However, real-life decisions often do not follow this theory perfectly, as shown by various paradoxes. To address these issues, the article presents alternative theories and extensions of classical probability theory that allow for different levels of uncertainty to be quantified.