Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 25 August 2019

Abstract and Keywords

The purpose of economic decision rules is to guide decision makers who have competing goals or are uncertain about how their goals can be fulfilled. This chapter discusses the assumptions underlying major decision rules such as expected utility maximization, discounting of future events, maximin, and various types of efficiency criteria including cost effectiveness and Pareto efficiency. All of these decision rules impose restrictions on the information to be taken into account, and since these restrictions are value laden, so are the decision rules. However, in the process of applying decision rules, the value assumptions are often put out of sight instead of being brought forward and discussed.

Keywords: cautiousness index, cost–benefit analysis, discounting, economic decision rule, efficiency, expected utility, goal conflict, maximin, optimism–pessimism index, time preference

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.