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Von Neumann-Morgenstern Utilities, Risk Taking, and Welfare

  • John C. Harsanyi

Abstract

Von Neumann and Morgenstern (1953, p. 28) have made it very clear that their utility theory disregards the utility (or the disutility) of the act of gambling itself. It seems to me that the utility functions defined by their theory have often been misinterpreted by paying insufficient attention to this fact. The purpose of this paper is to suggest a more adequate interpretation of von Neumann-Morgenstern (vNM) utility functions.

Keywords

Utility Function Marginal Utility Lottery Ticket Process Utility Outcome Utility 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© George R. Feiwel 1987

Authors and Affiliations

  • John C. Harsanyi

There are no affiliations available

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