Abstract: This part reviews the developments of axiomatic utility theory under risk beginning with von Neumann and Morgenstern’s (1947) first axiomatic formulation of expected utility. We proceed as follows: First, the general framework and some basic definitions are introduced and then the axioms and the functional representation of expected utility are presented. We also sketch out the empirical evidence concerning the independence axiom of expected utility in order to explain the motivation for further developments.
Publication Year: 1998
Publication Date: 1998-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot