THE ECONOMICS OF UNCERTAINTY III AND IV,

Abstract

The paper gives a simple proof of the Expected Utility theorem (The Bernoulli Principle) following the line of reasoning used in more classical economic theory. The assumptions required to prove the theorem are discussed briefly, and some decision rules which do not satisfy the assumptions are presented. The implications of the Bernoulli Principle are discussed in some detail. It is shown how different attitudes to risk can be represented by different classes of utility functions. (Author)

Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1965
Accession Number
AD0612731

Entities

People

  • Karl Borch

Organizations

  • University of California, Los Angeles

Tags

DTIC Thesaurus Topics

  • Cognition
  • Economics
  • Mental Processes
  • Psychological Phenomena And Processes
  • Reasoning
  • Uncertainty

Fields of Study

  • Economics
  • Mathematics

Readers

  • Business Analytics
  • Mathematical Modeling and Probability Theory.
  • Team-Based Human-Centered Cognitive Task Decision Making and Information Performance.