##  [Expected Utility Theory](/expected-utility-theory) 

  ##  [Expected Utility Theory](https://social.quantumdictionary.io/expected-utility-theory-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A decision‑theoretic model for choices under risk in which an agent's preferences over lotteries (probabilistic outcomes) are represented by the expectation of a utility function; agents choose the option with the highest expected utility, subject to the theory's axioms (completeness, transitivity, independence, continuity).

 

 

 

 

 





 

 



 ##  [Expected Utility Theory](https://humanitites.quantumdictionary.io/expected-utility-theory-1) 

  

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**Humanities & Arts Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A formal decision model in which an agent's preferences over risky prospects are represented by a utility function such that the agent is presumed to prefer lotteries with higher expected utility; under the von Neumann–Morgenstern axioms (completeness, transitivity, continuity, independence) preferences admit an expected‑utility representation and rational choice reduces to maximizing expected uti