expected utility


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expected utility

n
(Statistics) statistics the weighted average utility of the possible outcomes of a probabilistic situation; the sum or integral of the product of the probability distribution and the utility function
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If the contract is signed, the cyclist chooses a training and a doping level, which is not observable by the team manager, in order to maximize his expected utility.
If you factor in the expected utility cost over the next 20 years, it will be a cost savings of $25,000-$40,000 per year.
In Bayesian analysis, the decision maker forms a prior over models and proceeds as usual to maximize expected utility (or minimize expected loss).
The Modern Theory of Finance's theoretical framework, based on the precepts of Neoclassical Economic Theory, assumes that economic subjects make decisions with unlimited rationality, present risk aversion and aim to maximize expected utility at every decision made.
Based on rational choice theory, this essay develops a theoretical approach to explain how an individual's expected utility of protesting is affected by the probability of having a new government, together with the expected costs, expected benefits, and the probability of retributive consequences for protesting.
More generally, such method is applicable to determine explicitly indifference prices of contracts that depend on hedgeable risk and nonhedgeable risk (in an expected utility or non-expected-utility framework).
The expected utility of voter i, evaluated at the beginning of the game, is given by the discounted sum of the benefits from the public project plus the benefits from consumption.
They asked, "Is it lawful for a man to divorce his wife for any and every reason [in other words, when the expected utility from a divorce exceeds the expected utility from staying married]?
Choquet expected utility with neoadditive capacities.
To create a notion of preference, Decision Networks (DN), also called Influence Diagrams, will be used to create Expected Utility, which is a probabilistic preference ordering.
When [rho] 1 - [sigma], these preferences generate the same ordering over stochastic streams of consumption as expected utility does.
A research in the American Sociological Review, titled, "Moving Beyond Deterrence: The Effectiveness of Raising the Expected Utility of Abstaining from Terrorism in Israel," looked specifically at the Israeli-Palestinian conflict and found that between 1987 and 2004, Israeli policies and actions that encouraged and rewarded refrain from terrorist acts were more successful in reducing terrorism than policies focused on punishment.