Decision rule in the context of Randomised decision rule


Decision rule in the context of Randomised decision rule

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👉 Decision rule in the context of Randomised decision rule

In statistical decision theory, a randomised decision rule or mixed decision rule is a decision rule that associates probabilities with deterministic decision rules. In finite decision problems, randomised decision rules define a risk set which is the convex hull of the risk points of the nonrandomised decision rules.

As nonrandomised alternatives always exist to randomised Bayes rules, randomisation is not needed in Bayesian statistics, although frequentist statistical theory sometimes requires the use of randomised rules to satisfy optimality conditions such as minimax, most notably when deriving confidence intervals and hypothesis tests about discrete probability distributions.

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Decision rule in the context of Superrationality

In economics and game theory, a participant is considered to have superrationality (or renormalized rationality) if they have perfect rationality (and thus maximize their utility) but assume that all other players are superrational too and that a superrational individual will always come up with the same strategy as any other superrational thinker when facing the same problem. Applying this definition, a superrational player who assumes they are playing against a superrational opponent in a prisoner's dilemma will cooperate while a rationally self-interested player would defect.

This decision rule is not a mainstream model in game theory and was suggested by Douglas Hofstadter in his article, series, and book Metamagical Themas as an alternative type of rational decision making different from the widely accepted game-theoretic one. Hofstadter provided this definition: "Superrational thinkers, by recursive definition, include in their calculations the fact that they are in a group of superrational thinkers."

View the full Wikipedia page for Superrationality
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