Abstract
EU theory follows the utilitarian theory of choice under certainty in deriving a real-valued functional that represents preferences in the sense that higher values of the functional correspond to increasing preference. With the notation given above, we may present a formal outline of EU theory. For any prospect (x;p), the expected utility of the prospect is defined by a functional where is a utility function.
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© 1993 Springer Science+Business Media Dordrecht
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Quiggin, J. (1993). EU Theory. In: Generalized Expected Utility Theory. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2182-8_3
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DOI: https://doi.org/10.1007/978-94-011-2182-8_3
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-4966-5
Online ISBN: 978-94-011-2182-8
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