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.