An information–expectation framework for decisions under uncertainty

Despite being in existence for many decades, normative decision theory has not become a commonly used tool for real-world decisions. This paper considers the reasons for this situation and suggestions for circumventing them. The main suggestion involves a two-stage framework in terms of the information available to the decision maker and his/her expectations under the available acts. This framework is well suited for decisions with incomplete structure, which is typical of real decision situations. Within this framework a specific multiplicative model is also discussed.