Rationality and Dynamic Consistency Under Risk and Uncertainty
45
2.1.5 Chapter Outline
Following this introduction, the first part of the chapter provides some essential back-
ground regarding the theory of rational choice in static settings. The two Sections 2.2
and 2.3 are intended to remind the reader of the standard “static” approach to rational
planning that is encountered in most microeconomics textbooks. In this approach, fol-
lowing von Neumann’s (1928) definition of a game in normal form, the decision maker
is typically assumed to choose a planned course of action once and for all. Section 2.2
focuses on the case when actions have deter ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.