How does expected utility theory explain seemingly irrational decisions, such as Saddam Hussein's decision in 1991 not to withdraw forces from Kuwait?
A)It cannot explain these irrational decisions.
B)It explains these decisions by blaming flawed decision making.
C)In these types of decisions, the decision maker was choosing between a certain loss and a possible victory.
D)In these types of decisions, the decision maker was motivated by something other than expected utility.

Question

Quizplus · Accepted Answer

Expected utility theory can explain seemingly irrational decisions by suggesting that the decision maker was choosing between a certain loss (withdrawing forces and losing face or power) and a possible victory (maintaining a hold on Kuwait, which could potentially lead to greater power or resources). This framework posits that individuals make decisions based on the expected outcomes, weighing the utility of each potential outcome against its probability. In cases like Saddam Hussein's, the decision to not withdraw could be seen as rational from his perspective, aiming for a possible, albeit risky, victory rather than accepting a certain loss.

How Does Expected Utility Theory Explain Seemingly Irrational Decisions, Such