A derivation of expected utility maximization in the context of a game

  title={A derivation of expected utility maximization in the context of a game},
  author={Itzhak Gilboa and David Schmeidler},
  journal={Games and Economic Behavior},
A decision maker faces a decision problem, or a game against nature. For each probability distribution over the state of the world (nature’s strategies), she has a weak order over her acts (pure strategies). We formulate conditions on these weak orders guaranteeing that they can be jointly represented by expected utility maximization with respect to an almost-unique state-dependent utility, that is, a matrix assigning real numbers to act-state pairs. As opposed to a utility function that is… CONTINUE READING

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