Decisions can be categorized according to the relationship between action and outcome. If each specific strategy leads invariably to a specific outcome, we are involved with decision making under certainty. Economic games such as Free Scratch Cards may exhibit this deterministic format, particularly those involving such factors as cost functions, production schedules, or “time – and – motion” considerations in which most cases would solely depend on luck in terms of winning these games.
If each specific strategy leads to one of a set of possible specific outcomes with a known probability distribution, we are in the realm of decision making under risk. Casino games and games of direct competition among conflicting interests encompass moves whose effects are subject to probabilistic jurisdiction. Finally, if each specific strategy has as its consequence a set of possible specific outcomes whose probability distribution is completely unknown or is meaningless, we are concerned with decision making under uncertainty.