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How to Learn Decision Theory

A structured path through Decision Theory — from first principles to confident mastery. Check off each milestone as you go.

Decision Theory Learning Roadmap

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Estimated: 22 weeks

Foundations: Logic, Probability, and Preference

1-2 weeks

Build prerequisite knowledge in basic probability theory, propositional logic, and the concept of preference orderings. Understand what it means for preferences to be complete and transitive.

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Expected Value and Expected Utility Theory

2-3 weeks

Learn to calculate expected values and understand the Von Neumann-Morgenstern utility theorem. Study the axioms of rational preference and how they lead to expected utility maximization.

Decision Matrices, Trees, and Dominance

2-3 weeks

Master practical tools for structuring decision problems: payoff matrices, decision trees, and the concept of dominance. Practice backward induction and sensitivity analysis.

Decision Under Uncertainty

1-2 weeks

Study decision rules for when probabilities are unknown: maximin, maximax, minimax regret, and the Hurwicz criterion. Explore Knightian uncertainty and its implications.

Bayesian Decision Theory and Value of Information

2-3 weeks

Learn Bayesian probability updating, prior and posterior distributions, and how to compute the value of perfect and imperfect information in decision problems.

Paradoxes and Challenges to Expected Utility

1-2 weeks

Study the Allais Paradox, Ellsberg Paradox, St. Petersburg Paradox, and Newcomb's Problem. Understand what these reveal about the limits of standard decision theory.

Descriptive Theories and Behavioral Approaches

2-3 weeks

Explore Prospect Theory, satisficing, bounded rationality, and heuristics. Compare normative prescriptions with how people actually decide under risk and uncertainty.

Advanced Topics and Applications

3-4 weeks

Dive into multi-criteria decision analysis, sequential decision problems, causal vs. evidential decision theory, and applications in AI, medicine, policy, and philosophy.

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Decision Theory Learning Roadmap - Study Path | PiqCue