(Cross-posted from my blog)
At a rough level:
- Decision theory is about making decisions to maximize some objective function.
- Zero-sum game theory is about making decisions to optimize some objective function while someone else is making decisions to minimize this objective function.
These are quite different.
Decision theory and NP
Decision theory roughly corresponds to the NP complexity class. Consider the following problem:
Given a set of items, each of which has a integer-valued value and weight, does there exist a subset with total weight less than and total value at least ?
(It turns out that finding a solution is not much harder than determining whether there is a solution; if you know how to tell whether there is a solution to arbitrary problems of this form, you can in particular tell if there is a solution that uses any particular item.)
This is the knapsack problem, and it is in NP. Given a candidate solution, it is easy to check whether it actually is a solution: you just count the values and the weights. Since this solution would constitute a proof that the answer to the question is “yes”, and a solution exists whenever the answer is “yes”, this problem is in NP.
The following is a general form for NP problems: