The plan of this chapter is as follows. Section 7.1 gives an overview of previous attempts to justify the expected utility principle, and Section 7.2 outlines the intuitions on which the new axiomatisations are based. Section 7.3 presents the rulebased axiomatisation, which is followed in Section 7.4 by a presentation of the actbased axiomatisation. Section 7.5 discusses how the new axiomatisations resolves the Allais paradox and Section 7.6 analyses the relationship between the infamous independence axiom and the fifth intuition stated above, the trade-off principle.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Rights and permissions
Copyright information
© 2008 Springer Science + Business Media B.V
About this chapter
Cite this chapter
(2008). Expected utility. In: Nonbayesian Decision Theory. Theory and Decision Library, vol 44. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-8699-1_7
Download citation
DOI: https://doi.org/10.1007/978-1-4020-8699-1_7
Publisher Name: Springer, Dordrecht
Print ISBN: 978-1-4020-8698-4
Online ISBN: 978-1-4020-8699-1
eBook Packages: Humanities, Social Sciences and LawPhilosophy and Religion (R0)