Econometrica Vol. 40 No. 2 1972
Finite State Space and Expected Utility Maximization
Abstract
[In this paper we give necessary and sufficient conditions such that a decision maker who operates in a world in which finitely many states of nature can occur has an increasing, strictly concave utility function U(.) and a subjective probability measure P(.) and such that he chooses among acts with uncertain outcomes according to the expected value of U(.) (with respect to P(.)) which they offer him.]
- DOI
- 10.2307/1909404
- Volume
- 40
- Issue
- 2
- Pages
- 253
- Sources
- bibtex:phds-export.bib crossref openalex