Definition:Lottery/State-Variable Model
< Definition:Lottery(Redirected from Definition:State-Variable Model)
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Definition
A state-variable model is a technique to model decisions under uncertainty.
In a state-variable model, a lottery is defined as a mapping from a set of possible states into a set of prizes.
Also see
Sources
- 1991: Roger B. Myerson: Game Theory ... (previous) ... (next): $1.2$ Basic Concepts of Decision Theory