Info-gap decision theory is a non-probabilistic decision theory that seeks to optimize robustness to failure – or opportuneness for windfall – under severe uncertainty, in particular applying sensitivity analysis of the stability radius type to perturbations in the value of a given estimate of the parameter of interest. It has some connections with Wald's maximin model; some authors distinguish them, others consider them instances of the same principle.
It has been developed since the 1980s by Yakov Ben-Haim, and has found many applications and described as a theory for decision-making under "severe uncertainty". It has been criticized as unsuited for this purpose, and alternatives proposed, including such classical approaches as robust optimization.
Read more about Info-gap Decision Theory: Summary, Basic Example: Budget, Motivation, Example: Resource Allocation, Uncertainty Models, Robustness and Opportuneness, Decision Rules, Applications, Limitations, Criticism, Alternatives, Classical Decision Theory Perspective
Famous quotes containing the words decision and/or theory:
“Drug misuse is not a disease, it is a decision, like the decision to step out in front of a moving car. You would call that not a disease but an error of judgment.”
—Philip K. Dick (1928–1982)
“A theory if you hold it hard enough
And long enough gets rated as a creed....”
—Robert Frost (1874–1963)