The classical Expected Utility model
نویسندگان
چکیده
This chapter of a collective book aims at presenting the basics of decision making under risk. We ...rst de...ne notions of risk and increasing risk and recall de...nitions and classi...cations (that are valid independently of any representation) of behavior under risk. We then review the classical model of expected utility due to von Neumann and Morgenstern and its main properties. Issues raised by this model are then discussed and two models generalizing the expected utility model are brie‡y discussed.
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