Now I am taking the course of microeconomics and studying a brief "decision theory".
A decision theory studies how a person makes a decision under the circumstance of uncertainty, thus we use an idea of probability and expectation.
It might be pretty important for us to study the behavior of economic agent under the stochastic environment because almost all of us live and make some choices in the uncertain circumstance.
One of the famous stories related to this area of study is "Monty Hall Problem".
The story is quite simple:
There are three doors and there's a car behind one of the doors and a goat behind each of the left two doors. The problem is:
"If you choose the door 1 and open another door and see a goat behind the door, should you stick with the initial choice(door 1) or switch your choice(door 2 or 3)? "
Anyway, try it!!! If you want to know the brief answer to this problem, please see the first movie. Also, the related link is here.
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