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An Essay on Decision Theory with Imperfect Recall

Author

Listed:
  • Lorand Ambrus-Lakatos

    (Department of Political Science, Central European University)

Abstract

In this paper, I seek to establish a framework in which solutions to imperfect recall decision problems can be suitably examined. I introduce a strategy concept which is an extension of the standard concept employed since von Neumann and Morgenstern, and show how it may provide optimal solutions to problems which feature forgetting. For a technical analysis, I provide a characterization of imperfect recall extensive forms, a crucial input into future studies on the properties of optimal extended strategies. Also, I discuss further issues in decision theory with imperfect recall, including the prospects of induced forgetting when preferences change during the problem.

Suggested Citation

  • Lorand Ambrus-Lakatos, 1999. "An Essay on Decision Theory with Imperfect Recall," CERS-IE WORKING PAPERS 9905, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:9905
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    File URL: http://econ.core.hu/file/download/mtdp995/mtdp995.pdf
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    Cited by:

    1. Saori Chiba & Kaiwen Leong, 2016. "Behavioral Economics of Crime Rates and Punishment Levels," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(4), pages 727-754, December.

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