Expected Utility Illustrated: A Graphical Analysis of Gambles with More than Two Possible Outcomes

The author presents a simple geometric method to graphically illustrate the expected utility from a gamble with more than two possible outcomes. This geometric result gives economics students a simple visual aid for studying expected utility theory and enables them to analyze a richer set of decision problems under uncertainty compared to what they typically see in an intermediate-level microeconomics course.

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Year of publication:	2010
Authors:	Chen, Frederick H.
Published in:	The Journal of Economic Education. - Taylor & Francis Journals, ISSN 0022-0485. - Vol. 41.2010, 1, p. 63-70
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010622995