Learning Bayesian Statistics

Pricing Under Uncertainty: A Bayesian Workflow

Apr 16, 2026 5:03

Today's clip is from Episode 152 of the podcast, featuring Daniel Saunders. In this conversation, Daniel explores how Bayesian decision theory handles real-world risk aversion beyond the textbook maximum expected utility framework. The key insight: classical Bayesian decision theory assumes risk neutrality, but in practice, people and businesses are risk-averse. Using a pricing optimization…