On a decision rule for mixed strategy searching under uncertainty on the basis of the coefficient of optimism

Abstract

The paper presents a new decision rule which may be applied for mixed strategy searching under uncertainty, which means that the decision maker (DM) is able to prepare a payoffs’ matrix with possible alternatives and scenarios, but he does not know the probability of the occurrence of particular states of nature. The advantage of the new method, called the β-decision rule for mixed strategies, is the fact that it takes into account the DM’s coefficient of optimism on the basis of which a set of the most probable events is suggested and an optimization model is formulated and solved.