Expected utility theory (EUT) is currently the standard framework which formally defines rational decision-making under risky conditions. EUT uses a theoretical device called von Neumann-Morgenstern utility function, where concepts of function and random variable are employed in their...

Expected utility theory (EUT) is currently the standard framework which formally defines rational decision-making under risky conditions. EUT uses a theoretical device called von Neumann-Morgenstern utility function, where concepts of function and random variable are employed in their...

1. Introduction -- 2. Irrational foundations of "rational" behaviour in the standard paradigm -- 3. Contradictions of the Marxian paradigm -- 4. The new paradigm -- 5. Resolution of puzzles in microeconomics -- 6. Resolution of puzzles in finance -- 7. Resolution of puzzles in macroeconomics --...