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...function]] or [[probability mass function]] while leaving the mean (the [[expected value]]) unchanged. As such, the concept of mean-preserving spreads provid ...a mean-preserving spread of A, then B has a higher variance than A and the expected values of A and B are identical; but the converse is not in general true, b ...

{{ about|the treatment of probability in expected utility theory|the gambling uses of the term|Lottery }} In [[Expected utility hypothesis|expected utility theory]], a '''lottery''' is a [[Probability distribution#Discrete probabil ...

...be used up, because any unspent funds would represent unobtained potential utility. In these situations, the intertemporal budget constraint is effectively an ...from expenditures made at various times in the future, these [[discounted utility|utilities discounted back to the present]] at the consumer's rate of [[time ...

===Utility functions in the presence of risk=== ...ndent of the scale of the decision-maker's wealth. The constant elasticity utility function in this context is generally written as ...

...ndom variables. The two moments are almost always the mean—that is, the [[expected value]], which is the first moment about zero—and the [[variance]], which i ==Two-moment models and expected utility maximization== ...

...is a possible alternative to other risk measures as [[value-at-risk]] or [[expected shortfall]]. ...</ref> Given the connection to [[utility function]]s, it can be used in [[utility maximization problem]]s. ...

...ssumes that (i) investor's preferences are representable by the [[expected utility]] of final wealth, and that (ii) they require that the probability of their ...mpensation for a small increase in {{math|''&alpha;''}} by any increase in expected wealth. ...

...ree possible rankings of information structures: one based in ''[[expected utility]]'', one based in ''[[Blackwell's informativeness theorem#Garbling|informat The theorem states equivalent conditions under which any expected utility maximizing decision maker prefers information structure <math>\sigma </math ...

...y|portfolio allocations]]) so as to maximize the [[expected value]] of the utility function. ...ty|exponential utility function]], and the [[Isoelastic utility|isoelastic utility function]]. ...

...folio after a certain number of time periods&mdash;that is, the [[expected utility]] of final wealth. Alternatively, it may be a function of the various level ====Log utility==== ...

...erence price is the price at which an agent would have the same [[expected utility]] level by exercising a [[financial transaction]] as by not doing so (with Given a utility function <math>u</math> and a claim <math>C_T</math> with known payoffs at ...

{{Short description|Decision rule of maximizing utility}} ...nce to [[Harsanyi's utilitarian theorem]] or the [[Von Neumann–Morgenstern utility theorem|Von Neumann–Morgenstern theorem]]. ...

...s]], the '''expected value of including uncertainty''' ('''EVIU''') is the expected difference in the value of a decision based on a [[probabilistic analysis]] ...uncertainty. For this, Max Henrion, in his Ph.D. thesis, introduced the ''expected value of including uncertainty'' (EVIU), the topic of this article. ...

The value of structural health information is the expected utility gain of a built environment system by information provided by [[structural ...oclc=473420360}}</ref> Decision theory itself is based upon the [[expected utility hypothesis]] by Von Neumann and Morgenstern.<ref>{{Cite book|title=Theory o ...

...lue'', that is, the action which would be indicative of the best outcome [[Expected value|in expectation]] if one received the "news" that it had been taken. I ...f [[expected utility]] maximization. EDT proposes to maximize the expected utility of actions computed using [[Conditional probability|conditional probabiliti ...

In [[decision theory]], a '''multi-attribute utility''' function is used to represent the preferences of an agent over bundles o ...references can be represented by a numeric function. The article [[ordinal utility]] describes some properties of such functions and some ways by which they c ...

...n question displays some non-trivial features (properties that wouldn't be expected on the basis of chance alone or as a consequence of the constraints), such ...duced through edges being rewired at random, under the constraint that the expected degree of each vertex matches the degree of the vertex in the original grap ...

[[File:Merrill 1984 Figure 3 Social-Utility Efficiency for a Random Society.svg|thumb|350x350px|Efficiency of several v '''Social utility efficiency''' ('''SUE''')<ref name=":1" /> or '''voter satisfaction efficie ...

In [[mechanism design]], an agent is said to have '''single-parameter utility''' if his valuation of the possible outcomes can be represented by a single In the special case of '''single-parameter utility''', each agent <math>i</math> has a publicly known outcome [[Subset|proper ...

* '''Optimal''' means that we want to maximize the expected revenue of the auctioneer, where the expectation is over the randomness in ...ul mechanism and [[first-price sealed-bid auction#comparison-2nd-price|its expected profit is the same]]). ...