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Understanding Bruno de Finetti’s Decision Theory: A Basic Algorithm to Support Decision-Making Behaviour

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Decision Economics: In the Tradition of Herbert A. Simon's Heritage (DCAI 2017)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 618))

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Abstract

The aim of this work is to present an algorithm inspired to Bruno de Finetti’s decision theory, limited to the version proposed by him in the essay “La probabilità: guida nel pensare e nell’agire” released in 1965. This work is focused on decision theory within the subjective theory of probability conceived by de Finetti. It opens with a brief overview of his theory of probability, followed by a methodological analysis functional to introduce the renowned de Finetti’s example model given for the solution of decision problems. Starting from this example, this work presents a mathematical generalization of the decision algorithm. Afterwards, a real decisional algorithm written in mathematical-style pseudo code is developed. Finally, some conclusive remarks are discussed along with possible future developments.

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References

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Authors and Affiliations

  1. Department of Philosophical, Pedagogical and Economic-Quantitative Sciences, Section of Economics and Quantitative Methods, University of Chieti-Pescara, Pescara, Italy

    Edgardo Bucciarelli & Nicola Mattoscio

  2. School of Advanced Studies “G. d’Annunzio”, Doctorate of Philosophy Economics-and-Statistics, XXXII Cycle, University of Chieti-Pescara, Viale Pindaro N. 42, 65127, Pescara, Italy

    Valentina Erasmo

Authors
  1. Edgardo Bucciarelli
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  2. Nicola Mattoscio
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  3. Valentina Erasmo
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Corresponding author

Correspondence to Edgardo Bucciarelli .

Editor information

Editors and Affiliations

  1. Department of Philosophical, Pedagogical, and Economic-Quantitative Sciences, Section of Economics and Quantitative Methods, University of Chieti-Pescara, Pescara, Italy

    Edgardo Bucciarelli

  2. Department of Economics, National Chengchi University, Taipei, Taiwan

    Shu-Heng Chen

  3. Departamento de Informática y Automática, Universidad de Salamanca, Salamanca, Spain

    Juan M. Corchado

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Bucciarelli, E., Mattoscio, N., Erasmo, V. (2018). Understanding Bruno de Finetti’s Decision Theory: A Basic Algorithm to Support Decision-Making Behaviour. In: Bucciarelli, E., Chen, SH., Corchado, J. (eds) Decision Economics: In the Tradition of Herbert A. Simon's Heritage. DCAI 2017. Advances in Intelligent Systems and Computing, vol 618. Springer, Cham. https://doi.org/10.1007/978-3-319-60882-2_8

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  • DOI: https://doi.org/10.1007/978-3-319-60882-2_8

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-60881-5

  • Online ISBN: 978-3-319-60882-2

  • eBook Packages: EngineeringEngineering (R0)

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