expected utility in a sentence

Examples

1. Consequently, a choice based on " maximizing " the expected utility is also impossible.
2. All individuals are assumed to try to maximize the expected utility of their actions.
3. Theories of bounded rationality relax one or more assumptions of standard expected utility theory.
4. Like any mathematical model, expected utility theory is an abstraction and simplification of reality.
5. The expected utility maximizing individual makes decisions rationally based on the axioms of the theory.
6. David Schmeidler also developed the Choquet expected utility model.
7. Then under exponential utility, expected utility is given by:
8. This defies conventional rationality behind subjective expected utility theory.
9. Ellsberg actually proposed two separate thought experiments, the proposed choices which contradict subjective expected utility.
10. This is called the " expected utility theorem ".