Disambiguation evidence for expected utility theory (with John von Neumann) via surface form

"expected utility theory"


As subject (45)

Triples where this entity appears as subject under the label "expected utility theory".

Predicate Object
appliesTo choices among risky lotteries
appliesTo decisions under risk
assumes agents have a utility function over outcomes
assumes expected utility axiom
assumes independence axiom
assumes preferences are continuous
assumes preferences over lotteries are complete
assumes preferences over lotteries are transitive
characterizes rational choice under risk
contrastsWith expected value maximization of monetary payoffs
coreIdea rational agents maximize expected utility rather than expected monetary value
criticizedBy prospect theory
criticizedFor inability to explain Allais paradox
criticizedFor inability to explain Ellsberg paradox
criticizedFor violations of independence axiom in empirical data
describedIn Theory of Games and Economic Behavior
developedBy John von Neumann
developedBy Oskar Morgenstern
entails risk attitudes are captured by curvature of utility function
field decision theory
field economics
field game theory
formalizedBy expected utility theory (with John von Neumann) self-linksurface differs
surface form: von Neumann–Morgenstern utility theorem
hasVariant expected utility theory (with John von Neumann) self-linksurface differs
surface form: von Neumann–Morgenstern expected utility theory
implies choices can be represented as maximization of expected utility
influenced finance theory
influenced Theory of Games and Economic Behavior
surface form: game theory
influenced modern microeconomic theory
influenced risk analysis
influenced welfare economics
influencedBy Bernoulli’s theory of utility
instanceOf decision theory
instanceOf economic theory
instanceOf normative theory of choice
instanceOf theory of rational choice under risk
mathematicalForm EU(a)=Σ p_i u(x_i) over possible outcomes x_i with probabilities p_i
publicationYear 1944
requires cardinal utility up to positive affine transformations
usedIn cost–benefit analysis
usedIn expected utility maximization models in macroeconomics
usedIn insurance economics
usedIn portfolio choice theory
usesConcept lottery over outcomes
usesConcept probability distribution over outcomes
usesConcept utility function