Expected Utility and Mathematical Expectation

  • David Schmeidler
  • Peter Wakker
Part of the The New Palgrave book series (NPA)


1. Expected utility theory deals with choosing among acts where the decisionmaker does not know for sure which consequence will result from a chosen act. When faced with several acts, the decision–maker will choose the one with the highest ‘expected utility’, where the expected utility of an act is the sum of the products of probability and utility over all possible consequences.


Preference Relation Mathematical Expectation Utility Theory Expect Utility Theory Expected Utility Maximization 
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© Palgrave Macmillan, a division of Macmillan Publishers Limited 1990

Authors and Affiliations

  • David Schmeidler
  • Peter Wakker

There are no affiliations available

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