What is Decision Theory?

Decision theory is a comprehensive theoretical system of decision-making processes, criteria, types, and methods, which is a comprehensive application of system theory, operations research, and computer science developed after the Second World War to management decision-making. ^[1]

Administrative decision theory was formed in the 1930s and 1940s. First proposed

Decision theory is based on systems theory, which incorporates behavioral science,

The development trend of administrative decision theory is:

Decision theory

1. Emphasize the impact of human judgment on decision-making

For example, behavioral decision theory explores the ways in which policy makers seek suboptimal behavior; social judgment theory believes that decision makers are affected by different nature of the environment, which will cause misjudgment in judgment; attributive decision theory emphasizes that decision makers are subject to accidental factors under the influence of environmental variables influences. ^[1]

2. The scope of application of administrative decision theory is expanded

For example, the application of decision-making methods to the analysis of the effectiveness of administrative management; the introduction of decision-making theory into the study of sudden crisis; the application of decision-making theory to the field of policy analysis to study the causes and occasions of policy errors. ^[1]