The Effect of Probabilities on the Subjective Evaluation of Lotteries (Classic Reprint)

Uday S. Karmarkar

ISBN 10: 1332259014 / ISBN 13: 9781332259014

Published by Forgotten Books, 2015

About this Item

Zustand: Hervorragend | Sprache: Englisch | Produktart: Bücher.

Seller Inventory # 26073706/1

Bibliographic Details

• Title: The Effect of Probabilities on the Subjective Evaluation of Lotteries (Classic Reprint)
• Publisher: Forgotten Books
• Publication Date: 2015
• Language: English
• ISBN 10: 1332259014
• ISBN 13: 9781332259014
• Binding: Soft cover
• Condition: Hervorragend
• Seller catalogs:
  • Bücher

About this title

Synopsis

Excerpt from The Effect of Probabilities on the Subjective Evaluation of Lotteries

Of course, utility theory is only one part of the expected utility formu lation; the other component is the concept of subjective probabilities. Subjective probabilities are defined in the approach of the Savage axioms in terms of canonical lotteries and our later investigations will take note of this fact. Given the utilities and the subjective probabilities associated with the possible outcomes posterior to each action, the optimal act is said to be that action which maximises expected utility. This optimal act is the one that the decision maker should choose, and presumably the one that he would choose if this rule adequately represented his behavior.