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...

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

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

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

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...

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

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

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

is determined outside the model and is imposed on the model. expected utility hypothesis A foundational assumption in mathematical economics concerning...

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

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

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...

Exogenous and endogenous variables – Exogenous growth model – Expected utility hypothesis – The Experience Economy – Experimental economics – Externality...

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

algorithm Expectation propagation Expected mean squares Expected utility hypothesis Expected value Expected value of sample information Experiment...

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

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

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

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...

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

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

statistical hypothesis test is a method of statistical inference used to decide whether the data sufficiently supports a particular hypothesis. A statistical...

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

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

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

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

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