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Action Axiom
An action axiom is an axiom that embodies a criterion for describing action. Action axioms are of the form "If a condition holds, then the following will be done". On the action axiom Decision theory and, hence, decision analysis are based on the ''maximum expected utility'' (MEU) action axiom. In general, the principle for action embodied by an action axiom (such as MEU) is highly defensible and its scope very broad. The action-axiom is the basis of praxeology in the Austrian School, and it is the proposition that all specimens of the species ''Homo sapiens'', the ''Homo agens'', purposely utilize means over a period of time in order to achieve desired ends. In ''Human Action'', Ludwig von Mises defined “action” in the sense of the action axiom by elucidating: See also *Norm (artificial intelligence) Norms can be considered from different perspectives in artificial intelligence to create computers and computer software that are capable of intelligent behaviour. In art ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Axiom
An axiom, postulate, or assumption is a statement that is taken to be true, to serve as a premise or starting point for further reasoning and arguments. The word comes from the Ancient Greek word (), meaning 'that which is thought worthy or fit' or 'that which commends itself as evident'. The term has subtle differences in definition when used in the context of different fields of study. As defined in classic philosophy, an axiom is a statement that is so evident or well-established, that it is accepted without controversy or question. As used in modern logic, an axiom is a premise or starting point for reasoning. As used in mathematics, the term ''axiom'' is used in two related but distinguishable senses: "logical axioms" and "non-logical axioms". Logical axioms are usually statements that are taken to be true within the system of logic they define and are often shown in symbolic form (e.g., (''A'' and ''B'') implies ''A''), while non-logical axioms (e.g., ) are actually ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision Theory
Decision theory (or the theory of choice; not to be confused with choice theory) is a branch of applied probability theory concerned with the theory of making decisions based on assigning probabilities to various factors and assigning numerical consequences to the outcome. There are three branches of decision theory: # Normative decision theory: Concerned with the identification of optimal decisions, where optimality is often determined by considering an ideal decision-maker who is able to calculate with perfect accuracy and is in some sense fully rational. # Prescriptive decision theory: Concerned with describing observed behaviors through the use of conceptual models, under the assumption that those making the decisions are behaving under some consistent rules. # Descriptive decision theory: Analyzes how individuals actually make the decisions that they do. Decision theory is closely related to the field of game theory and is an interdisciplinary topic, studied by econom ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision Analysis
Decision analysis (DA) is the discipline comprising the philosophy, methodology, and professional practice necessary to address important decisions in a formal manner. Decision analysis includes many procedures, methods, and tools for identifying, clearly representing, and formally assessing important aspects of a decision; for prescribing a recommended course of action by applying the maximum expected-utility axiom to a well-formed representation of the decision; and for translating the formal representation of a decision and its corresponding recommendation into insight for the decision maker, and other corporate and non-corporate stakeholders. History In 1931, mathematical philosopher Frank Ramsey pioneered the idea of subjective probability as a representation of an individual’s beliefs or uncertainties. Then, in the 1940s, mathematician John von Neumann and economist Oskar Morgenstern developed an axiomatic basis for utility theory as a way of expressing an individual ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Expected Utility
The expected utility hypothesis is a popular concept in economics that serves as a reference guide for decisions when the payoff is uncertain. The theory recommends which option rational individuals should choose in a complex situation, based on their risk appetite and preferences. The expected utility hypothesis states an agent chooses between risky prospects by comparing expected utility values (i.e. the weighted sum of adding the respective utility values of payoffs multiplied by their probabilities). The summarised formula for expected utility is U(p)=\sum u(x_k)p_k where p_k is the probability that outcome indexed by k with payoff x_k is realized, and function ''u'' expresses the utility of each respective payoff. On a graph, the curvature of u will explain the agent's risk attitude. For example, if an agent derives 0 utils from 0 apples, 2 utils from one apple, and 3 utils from two apples, their expected utility for a 50–50 gamble between zero apples and two is 0.5''u''(0 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Praxeology
In philosophy, praxeology or praxiology (; ) is the theory of human action, based on the notion that humans engage in purposeful behavior, contrary to reflexive behavior and other unintentional behavior. French social philosopher Alfred Espinas gave the term its modern meaning, and praxeology was developed independently by two principal groups: the Austrian school, led by Ludwig von Mises, and the Polish school, led by Tadeusz Kotarbiński. Origin and etymology Coinage of the word ''praxeology'' ('' praxéologie'') is often credited to Louis Bourdeau, the French author of a classification of the sciences, which he published in his ''Théorie des sciences: Plan de Science intégrale'' in 1882: However, the term was used at least once previously (with a slight spelling difference), in 1608, by Clemens Timpler in his ''Philosophiae practicae systema methodicum'': It was later mentioned by Robert Flint in 1904 in a review of Bourdeau's ''Théorie des sciences''. The modern def ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Austrian School
The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian school theorists hold that economic theory should be exclusively derived from basic principles of human action.Ludwig von Mises. Human Action, p. 11, "Purposeful Action and Animal Reaction". Referenced 2011-11-23. The Austrian School originated in late-19th- and early-20th-century Vienna with the work of Carl Menger, Eugen von Böhm-Bawerk, Friedrich von Wieser, and others. It was methodologically opposed to the Historical School (based in Germany), in a dispute known as ''Methodenstreit'', or methodology struggle. Current-day economists working in this tradition are located in many different countries, but their work is still referred to as Austrian economics. Among the theoretical contributions of the early years of the Austrian School are the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Human Action
''Human Action: A Treatise on Economics'' is a work by the Austrian economist and philosopher Ludwig von Mises. Widely considered Mises' ''magnum opus'', it presents the case for laissez-faire capitalism based on praxeology, his method to understand the structure of human decision-making. It rejects positivism within economics. It defends an ''a priori'' epistemology and underpins praxeology with a foundation of methodological individualism and laws of apodictic certainty. Mises argues that the free-market economy not only outdistances any government-planned system, but ultimately serves as the foundation of civilization itself. ''Nationalökonomie: Theorie des Handelns und Wirtschaftens'' is the 1940 German-language predecessor to ''Human Action''. Synopsis Mises sees economic calculation as the most fundamental problem in economics. The economic problem to Mises is that of action. Man acts to dispel feelings of uneasiness, but can only succeed in acting if he comprehends caus ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Norm (artificial Intelligence)
Norms can be considered from different perspectives in artificial intelligence to create computers and computer software that are capable of intelligent behaviour. In artificial intelligence and law, legal norms are considered in computational tools to automatically reason upon them. In multi-agent systems (MAS), a branch of artificial intelligence (AI), a norm is a guide for the common conduct of agents, thereby easing their decision-making, coordination and organization. Since most problems concerning regulation of the interaction of autonomous agents are linked to issues traditionally addressed by legal studies, and since law is the most pervasive and developed normative system, efforts to account for norms in artificial intelligence and law and in normative multi-agent systems often overlap. Artificial intelligence and law With the arrival of computer applications into the legal domain, and especially artificial intelligence applied to it, logic has been used as the major to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
