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A non‐linear model for the experimental measurement of utility
Author(s) -
Suppes Patrick,
Walsh Karol
Publication year - 1959
Publication title -
behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 0005-7940
DOI - 10.1002/bs.3830040304
Subject(s) - econometrics , function (biology) , estimation , subjective expected utility , expected utility hypothesis , economics , computer science , mathematical economics , management , evolutionary biology , biology
When a person has to choose between two or more situations, each involving certain risks, he presumably weighs the chances of the possible outcomes against the “worth” of these outcomes to him. His estimation of the chances is governed by his “subjective probabilities,” his relative preferences for the outcomes by his “utility function.” This paper explores ways of estimating the latter so as to predict individuals' choices among various bets, assuming the chances are known.