expected utility in a sentence

Examples

1. This representation also rationalizes ambiguity aversion and has the maxmin expected utility as a particular case.
2. Therefore, the validity of expected utility theory depends on the empirical validity of the independence axiom.
3. The aim when designing an experiment is to maximize the expected utility of the experiment outcome.
4. Particular theories include prospect theory, rank-dependent expected utility and cumulative prospect theory and SP / A theory.
5. Cumulative prospect theory is one popular generalization of expected utility theory that can predict many behavioral regularities.
6. This differs from expected utility theory, in which a rational agent is indifferent to the reference point.
7. Then expected utility can be written as
8. According to expected utility theory, the person should choose either 1A and 2A or 1B and 2B.
9. When the uncertainty is well-characterized then traditional expected utility ( predict-then-act ) analyses are often most appropriate.
10. A variety of generalized expected utility theories have arisen, most of which drop or relax the independence axiom.