expected utility


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expected utility

[ek′spek·təd yü′til·əd·ē]
(mathematics)
References in periodicals archive ?
The team manager maximizes her expected utility by choosing the optimal contract:
Lemenhe Concludes that there are preferences explained by the Expected Utility Theory and that there are preferences explained by the Prospect Theory and that there are preferences that are not explained by the Expected Utility Theory nor by the Prospect Theory.
Based on rational choice theory, this essay approaches these puzzles by analyzing how the expected utility of protesting is affected by the following variables: the probability of having a new government, the probability of getting caught and receiving punishment when protesting, and the expected costs and benefits of doing so.
For example, in the particular case of expected utility, the preferences for a final wealth [X.
i) the expected utility of an office holder at the beginning of period 2 is given by
compares the expected utility of various outcomes, not the expected
The DN structure is used to produce expected utility values that may be useful in the distributed decision context.
At the outset, we noted that for plausible parameterizations of preferences that admit an expected utility representation, the standard model typically maximizes welfare.
Knowing what depositors will do in the postdeposit game, a representative bank offers a contract that maximizes the ex ante expected utility of the depositors.
The first four chapters are devoted to a description of Modern Portfolio Theory, Efficient Market Hypothesis and Expected Utility Theory and their flaws.
These prospects, coupled with the expected utility hikes, make consumers wary of spending and they rein in expenses," he added.
The levels of the model are linked by the expected utility derived from the choice offered in the level below.