social behaviour. The expected utility hypothesis states an agent chooses between risky prospects by comparing expected utility values (i.e., the weighted...

that the expected utility hypothesis does not characterize rationality must reject one of the VNM axioms. A variety of generalized expected utility theories...

up expected in Wiktionary, the free dictionary. Expected may refer to: Expectation (epistemic) Expected value Expected shortfall Expected utility hypothesis...

In expected utility theory, a lottery is a discrete distribution of probability on a set of states of nature. The elements of a lottery correspond to the...

explicit introduction of a utility function, an expected utility hypothesis, and the presumption of diminishing marginal utility of money. According to Daniel...

indifference curve analysis of Slutsky, Hicks, and Allen. The expected utility hypothesis of Bernoulli and others was revived by various 20th century thinkers...

utility gained by the act of gambling), and measuring deviations from the initial level of utility at the "normal" level of income. Expected utility hypothesis...

hypothesised that individuals seek to maximise their expected utility rather than the expected monetary value of assets. In defining expected utility...

Concurrently, the Expected utility hypothesis and discounted utility models began to gain acceptance. In challenging the accuracy of generic utility, these concepts...

behavioral violations of the expected utility hypothesis, or they may explicitly give a functional form for time-inconsistent utility functions (e.g. Laibson's...

theory known as rational choice theory, particularly in expected utility hypothesis. Expected utility theory relies on a property known as cancellation, which...

paradox in which people's decisions are inconsistent with subjective expected utility theory. John Maynard Keynes published a version of the paradox in 1921...

The permanent income hypothesis (PIH) is a model in the field of economics to explain the formation of consumption patterns. It suggests consumption patterns...

indifference curve analysis of Slutsky, Hicks, and Allen. The expected utility hypothesis of Bernoulli et alii was revived by various 20th century thinkers...

case the utility function above is replaced by the expected value of a von Neumann-Morgenstern utility function (See expected utility hypothesis). The standard...

Harper distinguished between two kinds of expected utility maximization. EDT proposes to maximize the expected utility of actions computed using conditional...

expected causal effects. In a 1981 article, Allan Gibbard and William Harper explained causal decision theory as maximization of the expected utility...

aversion Risk neutral Risk-loving Minimum acceptable rate of return Expected utility hypothesis LIBOR–OIS spread Risk premia parity Kelly criterion Gagliardini...

Behavioral economics Consumer capitalism Distribution of wealth Expected utility hypothesis Intrinsic theory of value Labour theory of value Marginalism...

markets Utility Risk aversion Expected utility hypothesis Utility maximization problem Marginal utility Quasilinear utility Generalized expected utility Economic...

The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct...

less utility. The expected utility model states that individuals want to maximize their expected utility, as defined as the weighted sum of utilities across...

In physics and thermodynamics, the ergodic hypothesis says that, over long periods of time, the time spent by a system in some region of the phase space...

within Frank Ramsey's body of work. Biography portal Clique game Expected utility hypothesis Money pump Ramsey cardinal Structural Ramsey theory Quantum Bayesianism...

then be defined as the maximization of expected utility. More formally, the resulting expected utility hypothesis states that, if certain axioms are satisfied...

The Red Queen's hypothesis is a hypothesis in evolutionary biology proposed in 1973, that species must constantly adapt, evolve, and proliferate in order...

259) Kahneman and Tversky published a paper in 1979 criticising expected utility hypothesis and the very idea of the rational economic agent. The main point...

Association (May 1952), pp. 612–25 JSTOR "The Expected-Utility Hypothesis and the Measurability of Utility", with Leonard Savage, 1952, Journal of Political...

functions common in economics: Expected utility theory Level of measurement Marginal utility Multi-attribute utility Utility Arrow's impossibility theorem...

life-cycle model. See Intertemporal choice § Modigliani's life cycle income hypothesis for details. The life-cycle model of consumption suggests that consumption...