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**Decision theory** is the study of principles and algorithms for making correct ~~decisions—~~decisions—that is, decisions that allow an agent to achieve better outcomes with respect to its ~~goals [~~~~1~~~~]~~goals. Every action at least implicitly represents a decision under uncertainty: in a state of partial knowledge, something has to be done, even if that something turns out to be nothing (call it "the null action"). Even if you don't know how you make decisions, decisions do get made, and so there has to be some underlying mechanism. What is it? And how can it be done better? Decision theory has the answers.

~~See also: ~~*Note: this page needs to be updated with content regarding Functional Decision Theory, the latest theory from MIRI.*

*Related: *Game Theory, Robust Agents, Utility Functions

A core idea in decision theory is that of *expected utility** maximization*, usually intractable to directly calculate in practice, but an invaluable theoretical concept. An agent assigns utility to every possible outcome: a real number representing the goodness or desirability of that outcome. The mapping of outcomes to utilities is called the agent's *utility function*. (The utility function is said to be invariant under affine transformations: that is, the utilities can be scaled or translated by a constant while resulting in all the same decisions.) For every action that the agent could take, sum over the utilities of the various possible outcomes weighted by their probability: this is the expected utility of the action, and the action with the highest expected utility is to be chosen.

The ~~best ~~limitations and pathologies of decision theories can be analyzed by considering the decisions they suggest in the certain idealized situations that stretch the limits of decision theory's applicability. Some of the thought experiments more frequently discussed on LW include:

- Newcomb's problem
- Counterfactual mugging
- Parfit's hitchhiker
- Smoker's lesion
- Absentminded driver
- Sleeping Beauty problem
- Prisoner's dilemma
- Pascal's mugging

Standard theories well-known in academia:

Theories invented by researchers associated with MIRI and LW:

- FDT: Functional Decision Theory
- TDT, Timeless Decision Theory
- UDT, Updateless Decision Theory
- ADT: Ambient Decision Theory (a variant of UDT)
- FDT: Cheating Death in Damascus

Other decision theories are listed in A comprehensive list of decision theories.

- Terminal Values and Instrumental Values
- Decision Theories: A Less Wrong Primer by orthonormal
- Decision Theory FAQ by lukeprog and crazy88

- Decision theory: An outline of some upcoming posts
- Confusion about Newcomb is confusion about counterfactuals
- Why we need to reduce “could”, “would”, “should”
- Why Pearl helps reduce “could” and “would”, but still leaves us with at least three alternatives

- Part 0: Decision Theories: A Less Wrong Primer
- Part I: The Problem with Naive Decision Theory
- Part II: Causal Decision Theory
~~(CDT)~~and Substitution - Part III: Formalizing Timeless Decision Theory

- Instrumental rationality
- Causality
- Expected utility
- Evidential Decision Theory
~~(EDT). On LessWrong, an alternative family of~~ - Timeless decision
~~theories has been discussed heavily with the varying names of~~theory, Updateless~~Decision Theory (UDT), Timeless Decision Theory (TDT), and Functional Decision Theory (FDT).~~decision theory - AIXI

**Decision theory** is the study of principles and algorithms for making correct ~~decisions—~~decisions—that is, decisions that allow an agent to achieve better outcomes with respect to its goals [1].

*See also: Game Theory, Robust Agents, Utility Functions*

The best known decision theories are Causal Decision Theory (CDT) and Evidential Decision Theory (EDT). On LessWrong, an alternative family of decision theories has been discussed heavily with the varying names of Updateless Decision Theory (UDT), Timeless Decision Theory (TDT), and Functional Decision Theory (FDT).~~ ~~

**Decision theory** is the formal study of an agent's choices [1].

The best known decision theories are Causal Decision Theory (CDT) and Evidential Decision Theory (EDT). On LessWrong, an alternative family of decision theories has been discussed heavily with the varying names of Updateless Decision Theory (UDT), Timeless Decision Theory (TDT), and Functional Decision Theory (FDT).