Economic Theory

, Volume 16, Issue 2, pp 489–502 | Cite as

Upper and lower bounds for expected utility

  • Marco LiCalzi
Exposita Notes

Summary.

The decision-theoretic literature has developed very few techniques to bound the expected utility of a random variable when only simple statistics like its median or mode or mean are known. One reason for this lack of results is that we are missing a convenient way to link probability theory and expected utility. This paper is written to demonstrate a general (and genuinely probabilistic) technique to obtain upper and lower bounds for the expected utility of a lottery.

Keywords and Phrases:Expected utility, Bounds, Dominance, Inequalities. 
JEL Classification Numbers:D81, C44. 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  • Marco LiCalzi
    • 1
  1. 1.Department of Applied MathematicsUniversity of VeniceVeneziaItaly

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