Shackle's Economic Agent and Modern Decision Theory
University of Siena Economics Working Paper No. 394
24 Pages Posted: 12 Jan 2004
Date Written: August 2003
This paper assesses the rationale of George Shackle's argument against Bayesian decision making in the light of recent developments of modern decision theory. The focus is on the so-called non-additive probability approach to decision theory under uncertainty, which, not unlike Shackle's analysis, stresses the inability of agents to describe uncertain environments. A discussion of the pros and cons of the parallel between Shackle's theory and the non-additive developments is provided.
Keywords: uncertainty, decision theory, non-additive probabilities
JEL Classification: B21, D81
Suggested Citation: Suggested Citation