Difference between revisions of "Expected utility"

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'''Expected utility''' is the [[expected value]] of a [[utility function]].
 
'''Expected utility''' is the [[expected value]] of a [[utility function]].
  
Von Neumann and Morgenstern proved the [http://www.econ.hku.hk/~wsuen/uncertainty/eu.pdf expected utility theorem], which says that when a rational agent chooses between different "gambles" (probability distributions over outcomes), the utility of such a gamble can always be seen as the expected utility of the gamble's outcome.
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Von Neumann and Morgenstern proved the [http://web.archive.org/web/20070221104329/http://www.econ.hku.hk/~wsuen/uncertainty/eu.pdf expected utility theorem], which says that when a rational agent chooses between different "gambles" (probability distributions over outcomes), the utility of such a gamble can always be seen as the expected utility of the gamble's outcome.
  
 
Humans, of course, are a different story.
 
Humans, of course, are a different story.

Revision as of 19:20, 7 January 2011

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Expected utility is the expected value of a utility function.

Von Neumann and Morgenstern proved the expected utility theorem, which says that when a rational agent chooses between different "gambles" (probability distributions over outcomes), the utility of such a gamble can always be seen as the expected utility of the gamble's outcome.

Humans, of course, are a different story.

Blog posts

By Stuart Armstrong:

See also