Definition of The Expected Utility Hypothesis: The expected utility hypothesis is the hypothesis that the utility of an agent facing uncertainty is calculated by considering utility in each possible state and constructing a weighted average, where the weights are the agent's estimate of the probability of each state. Arrow, 1963 attributes to Daniel Bernoulli (1738) the earliest known written statement of this hypothesis. (Econterms)

Terms related to The Expected Utility Hypothesis:
None

About.Com Resources on The Expected Utility Hypothesis:
None

Writing a Term Paper? Here are a few starting points for research on The Expected Utility Hypothesis:

Books on The Expected Utility Hypothesis:
None

Journal Articles on The Expected Utility Hypothesis:
None

<Return to Main Page>