A Rational Decision Maker with Ordinal Utility under Uncertainty: Optimism and Pessimism

TL;DR

This paper explores decision-making models that maintain ordinal invariance under uncertainty, proposing a rational approach that incorporates optimism and pessimism without relying solely on expected utility maximization.

Contribution

It introduces a novel decision-making framework that preserves ordinal invariance and accounts for optimism and pessimism, advancing rational choice models under uncertainty.

Findings

Proposes a decision model respecting ordinal invariance

Integrates optimism and pessimism into decision-making

Challenges traditional expected utility maximization

Abstract

In game theory and artificial intelligence, decision making models often involve maximizing expected utility, which does not respect ordinal invariance. In this paper, the author discusses the possibility of preserving ordinal invariance and still making a rational decision under uncertainty.