Explains a development in Davidson’s account of the procedures of the radical interpreter which involves bringing to bear more explicitly the constraints imposed by the framework of decision theory on the interpretation of another. Application of decision theory to explanation of behaviour requires assigning degrees of belief and desirabilites in explaining action. These assignments are of particular importance in interpreting non-observation terms.
Keywords: decision theory, degrees of belief, desirabilities, logical connectives, non-observation terms, preferences, subjective probabilities