| 31. | In expected utility theory, the individual does not care how the outcome of losses and gains are framed.
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| 32. | The von Neumann Morgenstern utility theorem provides necessary and sufficient conditions under which the expected utility hypothesis holds.
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| 33. | Its decision problem is to choose " q " so as to maximize the expected utility of profit:
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| 34. | If R > 0, then the expected utility of voting outweighs its costs, and it is reasonable to vote.
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| 35. | As such, claims that the expected utility hypothesis does not characterize rationality must reject one of the VNM axioms.
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| 36. | Its axiomatization allows for non-additive probabilities and the expected utility of an act is defined using a Choquet integral.
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| 37. | Giving What We Can uses an expected value ( or expected utility ) framework when evaluating and comparing charities.
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| 38. | The crucial idea of rank-dependent expected utility was to overweight only unlikely extreme outcomes, rather than all unlikely events.
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| 39. | For a single game, the analysis of expected utility explains why people often make a logical decision to deal ."
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| 40. | :: : : : : Thanks for the interesting link ( which led to the Expected utility hypothesis article ).
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