Expected Utility without Utility

Article, Preprint English OPEN
E. Castagnoli ; M. LiCalzi (1996)
  • Related identifiers: doi: 10.1007/BF00136129
  • Subject: expected utility | cardinal utility | stochastic dominance | expected utility, cardinal utility, benchmark, risk attitude, stochastic dominance | Dati non disponibili | risk attitude | benchmark
    • jel: jel:C7 | jel:D8

This paper advances an interpretation of Von Neumann–Morgenstern’s expected utility model for preferences over lotteries which does not require the notion of a cardinal utility over prizes and can be phrased entirely in the language of probability. According to it, the expected utility of a lottery can be read as the probability that this lottery outperforms another given independent lottery. The implications of this interpretation for some topics and models in decision theory are considered.
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