{"product_id":"9783540542476","title":"Lecture Notes in Economics and Mathematical Systems","description":"\u003ch1\u003eLecture Notes in Economics and Mathematical Systems\u003c\/h1\u003e \u003ch2\u003ePuppe, Clemens\u003c\/h2\u003e \u003cp\u003eDuring the development of modern probability theory in the 17th cen­ tury it was commonly held that the attractiveness of a gamble offering the payoffs :1:17 ••• ,:l: with probabilities Pl, . . . , Pn is given by its expected n value L:~ :l:iPi. Accordingly, the decision problem of choosing among different such gambles - which will be called prospects or lotteries in the sequel-was thought to be solved by maximizing the corresponding expected values. The famous St. Petersburg paradox posed by Nicholas Bernoulli in 1728, however, conclusively demonstrated the fact that individuals l consider more than just the expected value. The resolution of the St. Petersburg paradox was proposed independently by Gabriel Cramer and Nicholas's cousin Daniel Bernoulli [BERNOULLI 1738\/1954]. Their argument was that in a gamble with payoffs :l:i the decisive factors are not the payoffs themselves but their subjective values u( :l:i)' According to this argument gambles are evaluated on the basis of the expression L:~ U(Xi)pi. This hypothesis -with a somewhat different interpretation of the function u - has been given a solid axiomatic foundation in 1944 by v. Neumann and Morgenstern and is now known as the expected utility hypothesis. The resulting model has served for a long time as the preeminent theory of choice under risk, especially in its economic applications.\u003c\/p\u003e \u003ch3\u003eDetails\u003c\/h3\u003e \u003cp\u003ePublished by: Springer\u003c\/p\u003e \u003cp\u003ePublication Date: 1991-07-10\u003c\/p\u003e \u003cp\u003eFormat: Paperback\u003c\/p\u003e \u003cp\u003eISBN-13: 9783540542476\u003c\/p\u003e \u003cp\u003eDOI: 10.1007\/978-3-642-58203-5\u003c\/p\u003e \u003cp\u003eDimensions: 242cm x170cm\u003c\/p\u003e \u003cp\u003ePages: 100\u003c\/p\u003e ","brand":"Springer Berlin Heidelberg","offers":[{"title":"Default Title","offer_id":44407981146252,"sku":"9783540542476","price":49.49,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0710\/9545\/1788\/files\/9783540542476.jpg?v=1771509629","url":"https:\/\/fh90cf-fv.myshopify.com\/products\/9783540542476","provider":"Late Knight Books and Services, LLC","version":"1.0","type":"link"}