expected utility

In decision theory, the expected utility of an outcome is the utility that is assigned to its occurrence, multiplied by the probability of its occurrence. The central concept was first formulated by Christian Huygens (1629–95).

Philosophy dictionary. . 2011.

Look at other dictionaries:

  • Expected Utility — An economic term summarizing the utility that an entity or aggregate economy is expected to reach under any number of circumstances. The expected utility is calculated by taking the weighted average of all possible outcomes under certain… …   Investment dictionary

  • expected utility — …   Useful english dictionary

  • Expected utility hypothesis — In economics, game theory, and decision theory the expected utility hypothesis is a theory of utility in which betting preferences of people with regard to uncertain outcomes (gambles) are represented by a function of the payouts (whether in… …   Wikipedia

  • Generalized expected utility — The expected utility model developed by John von Neumann and Oskar Morgenstern dominated decision theory from its formulation in 1944 until the late 1970s, not only as a prescriptive, but also as a descriptive model, despite powerful criticism… …   Wikipedia

  • Subjective expected utility — is a method in decision theory in the presence of risk, originally put forward by L. J. Savage in 1954 [Savage, Leonard J. 1954. The Foundations of Statistics . New York, Wiley.] . It combines two distinct subjective concepts: a personal utility… …   Wikipedia

  • Rank-dependent expected utility — The rank dependent expected utility model (originally called anticipated utility) is a generalized expected utility model of choice under uncertainty, designed to explain the behaviour observed in the Allais paradox, as well as for the… …   Wikipedia

  • Expected — may refer to: *Expectation *Expected value *Expected shortfall *Expected utility hypothesis *Expected return *Expected gain;See also *Unexpected …   Wikipedia

  • Utility — This article is about the economic concept. For other uses, see Utility (disambiguation). Part of a series on Utilitarianism …   Wikipedia

  • utility patent — The most common type of patent; issued for useful inventions that are new (novel) and that produce results that are not expected by those working in the field of invention (nonobvious). A utility patent lasts for 20 years from the patent… …   Law dictionary

  • utility man — noun 1. a baseball player valued for the ability to play at several positions • Hypernyms: ↑ballplayer, ↑baseball player 2. a workman expected to serve in any capacity when called on • Hypernyms: ↑workman, ↑workingman, ↑working man, ↑ …   Useful english dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.