Accession Number : AD0612731

Title :   THE ECONOMICS OF UNCERTAINTY III AND IV,

Corporate Author : CALIFORNIA UNIV LOS ANGELES

Personal Author(s) : Borch,Karl

Report Date : FEB 1965

Pagination or Media Count : 37

Abstract : The paper gives a simple proof of the Expected Utility theorem (The Bernoulli Principle) following the line of reasoning used in more classical economic theory. The assumptions required to prove the theorem are discussed briefly, and some decision rules which do not satisfy the assumptions are presented. The implications of the Bernoulli Principle are discussed in some detail. It is shown how different attitudes to risk can be represented by different classes of utility functions. (Author)

Descriptors :   (*GAME THEORY, COMMERCE), (*COMMERCE, GAME THEORY), (*ECONOMICS, GAME THEORY), DECISION MAKING, THEORY, PROBABILITY, STATISTICAL DISTRIBUTIONS

Distribution Statement : APPROVED FOR PUBLIC RELEASE