Explain and describe some of the basic features and assumptions of decision theory – include a discussion of some of the advantages and difficulties of framing and quantifying our actions “utility”.

Decision & Game theory
We discussed some of the basic assumptions of decision and game theory. Theorists differ on whether these are theories only of how we ought to choose if rational, or whether these also are descriptive of how we actually act. But perhaps they are neither – or both?

• Explain and describe some of the basic features and assumptions of decision theory – include a discussion of some of the advantages and difficulties of framing and quantifying our actions “utility”.
• Explain the difference between decision theory and game theory?
• Give an example of a ‘game’ and/or a decision theoretic scenario – and use it to analyze what would be decision/game theoretically ‘rational’ to do.
• Are we or should we be “Utility maximizors”? Do you think decision and game theory applies – if at all – to real world scenarios?