Decision theory is the analysis of the behavior of an individual facing nonstrategic uncertainty.Decision theory depends on probability theory and Theory of Cognition which was developed by Blaise Pascal, Daniel Bernoulli, and Thomas Bayes.Beliefs are primitive data for the rational actor model. So the rational actor model also described as the Beliefs, Preferences and Constraints model, or the BPC model. A rational actor is an individual with consistent preferences.In recent years there has been a great development of interest in the principles and the problems of rational decision‐making and rational action. Economists, mathematicians, statisticians, logicians, engineers, and philosophers have all addressed their efforts to various phases of the general problem of rationality.Human behavior exhibit weakness of will, in the sense that if there is a long time period between choosing and experiencing the costs and benefits of the choice, individuals can choose wisely, but when costs or benefits are immediate, people make poor choices, longrun payoffs being sacrificed in favor of immediate payoffs.Decisions in the brain are based on the dynamic accumulation of noisy activation for each action, and the action whose activation first exceeds the threshold is chosen.Time preference is one of the fundamental factors in decision making process. Understanding the nature of this time preference provides us with deep insight into human behaviors and economic decisions.
Patnaik, Prof.Srikanta Professor, "Modeling Decision from Human Behavior" (2018). Invited Talks. 28.