The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Savage’s Subjective Expected Utility Model

  • Edi Karni
Reference work entry


This article reviews Savage’s subjective expected utility theory and takes a critical view of the corresponding concept of subjective probabilities as a representation of decision makers’ beliefs.


Bayesian statistics Bernoulli, D. De Finetti, B. Decisions under uncertainty Expected utility hypothesis Monotonicity Objective probability Probability Ramsey, F. P. Savage, L. J. St Petersburg paradox State-dependent preferences Subjective probability Sure thing principle Utility Utility-maximizing behaviour 

JEL classifications

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Edi Karni
    • 1
  1. 1.