Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/111176
Authors: 
Güth, Werner
Kliemt, Hartmut
Year of Publication: 
2015
Series/Report no.: 
Economics Discussion Papers 2015-46
Abstract: 
A rigorous reconstruction of scenario-based real choice making reveals the incompleteness of decision-modeling and the practical prevalence of uncertainty. Theoretically complete models conceal it. As a remedy a scenario-based procedure of coping with uncertainty can prescribe how the boundedly rational decision-maker should proceed from her or his internal point of view. Though models of substantive rationality cannot serve as guidance for decision-making under uncertainty, we can improve prescriptions for coping with uncertainties in view of evidence of substantive success or failure. Decision theory should aim for a reflective equilibrium incorporating internalist-prescriptive and externalist-descriptive aspects to turn good into better practice.
Subjects: 
uncertainty
procedural rationality
satisficing
risk-communication
JEL: 
D80
D01
D03
D21
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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