Jun 3, 2016 · It covers a variety of standard decision theories, and a bit of game theory, but these are presented as illustrations of the preceding mathematics. For example, the basic case of …

Jan 5, 2021 · I am confused by something regarding expected utility calculation. When we are calculating the expected utility where 2 positive outcomes can happen at the same time such …

Jan 6, 2019 · The von Neumann-Morgenstern utility theorem is easy to prove for a finite number of outcomes. Is it still true for an infinite number of outcomes? With infinite outcomes, a lottery …

Apr 4, 2024 · Let's say for this person, gaining the dollar has a value of 1 utility unit, neither gaining nor losing has a value of 0 utility, and losing a dollar has the utility of -2 utility units. In …

May 27, 2021 · Reading about Decision Theory I have come about Allais Paradox to be an argument against expected utility theory. One faces the following lotteries each with 100 …

The proofs are rather lengthy and messy, you can take a look at the proof of Theorem 8.2. in the book Utility theory for decision making by Peter C. Fishburn, which essentially proves the …

So to maximize expected utility you should pick 2. This representation is particularly useful when you're trying to analyze other decision strategies. For example you can apply the minimax …

Sep 1, 2017 · The question should most naturally be answered from the perspective of economics, which of course uses mathematics. Most economists would use (expected) utility …

Apr 5, 2023 · Expected utility theory, risk aversion, mean preserving spread Ask Question Asked 2 years, 5 months ago Modified 2 years, 5 months ago

Sep 27, 2024 · In other cases/questions particularly covered in Utility Theory Week 2, expected value is determined with probabilities assigned to the rates of return of an asset and its effect …