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EXPECTED UTILITY THEORY - -- | HEC Paris

EXPECTED UTILITY THEORY - -- | HEC Paris

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mixed in a given proportion with a third lottery. This axiom is responsible for the specific, expectional form of the function u(x) provided by the VNM theorem. A few constructions also involve a compound lottery axiom, which says in effect that any lottery having further lotteries as its outcomes can be reduced to a one-stage lottery.

  Mixed

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