In decision theory
Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, ratio ...
, a decision rule is said to dominate another if the performance of the former is sometimes better, and never worse, than that of the latter.
Formally, let
and
be two
decision rules, and let
be the
risk
In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environ ...
of rule
for parameter
. The decision rule
is said to dominate the rule
if
for all
, and the inequality is strict for some
.
[.]
This defines a
partial order on decision rules; the
maximal elements with respect to this order are called ''
admissible decision rules.''
References
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Decision theory