Publisher's 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. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
