May 27, 2021 · Reading about Decision Theory I have come about Allais Paradox to be an argument against expected utility theory. One faces the following lotteries each with 100 …

Sep 27, 2024 · In other cases/questions particularly covered in Utility Theory Week 2, expected value is determined with probabilities assigned to the rates of return of an asset and its effect …

Jan 5, 2021 · I am confused by something regarding expected utility calculation. When we are calculating the expected utility where 2 positive outcomes can happen at the same time such …

Apr 4, 2024 · However, the expected value of the utility is $0.5 (1)+.5 (-2)=-0.5$, since the utility function has the person being risk adverse. So in this case the expected value of the utility …

Jan 6, 2019 · The von Neumann-Morgenstern utility theorem is easy to prove for a finite number of outcomes. Is it still true for an infinite number of outcomes? With infinite outcomes, a lottery …

The expected utility of choosing decision 2 is computed similarly by looking at column 2. Hence as you have shown $$ u (D=1)=0.2 (400)+0.8 (2)=81.6 $$ $$ u (D=2)=0.2 (20)+0.8 (100)=84. $$ …

Jun 3, 2016 · It covers a variety of standard decision theories, and a bit of game theory, but these are presented as illustrations of the preceding mathematics. For example, the basic case of …

The proofs are rather lengthy and messy, you can take a look at the proof of Theorem 8.2. in the book Utility theory for decision making by Peter C. Fishburn, which essentially proves the …

Apr 5, 2023 · Expected utility theory, risk aversion, mean preserving spread Ask Question Asked 2 years, 5 months ago Modified 2 years, 5 months ago

Counterexample in axioms of expected utility theory Ask Question Asked 11 years, 3 months ago Modified 11 years, 3 months ago