expected utility theory (with John von Neumann)
E11182
decision theory
economic theory
mathematician
normative theory of choice
physicist
theory of rational choice under risk
Expected utility theory (with John von Neumann) is a foundational framework in economics and decision theory that models how rational agents make choices under uncertainty by maximizing the expected value of a utility function.
All labels observed (7)
How this entity was disambiguated
This entity first appeared as the object of triple T81429 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: expected utility theory (with John von Neumann) Context triple: [Oskar Morgenstern, theoryDeveloped, expected utility theory (with John von Neumann)]
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A.
Theory of Games and Economic Behavior
Theory of Games and Economic Behavior is a foundational 1944 book by John von Neumann and Oskar Morgenstern that established game theory as a rigorous mathematical framework for analyzing strategic decision-making in economics.
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B.
Nash bargaining solution
The Nash bargaining solution is a foundational concept in game theory that defines a fair and efficient outcome for two-party bargaining problems based on axioms of rationality and symmetry.
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C.
A Treatise on Probability
A Treatise on Probability is John Maynard Keynes’s influential 1921 work that develops a logical and philosophical theory of probability, challenging classical and frequency-based interpretations.
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D.
De ratiociniis in ludo aleae
De ratiociniis in ludo aleae is a pioneering 17th-century treatise on probability theory, particularly as applied to games of chance.
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E.
Oskar Morgenstern
Oskar Morgenstern was an Austrian-American economist best known as the co-founder of game theory through his seminal work "Theory of Games and Economic Behavior" with John von Neumann.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: expected utility theory (with John von Neumann) Target entity description: Expected utility theory (with John von Neumann) is a foundational framework in economics and decision theory that models how rational agents make choices under uncertainty by maximizing the expected value of a utility function.
-
A.
Theory of Games and Economic Behavior
Theory of Games and Economic Behavior is a foundational 1944 book by John von Neumann and Oskar Morgenstern that established game theory as a rigorous mathematical framework for analyzing strategic decision-making in economics.
-
B.
Nash bargaining solution
The Nash bargaining solution is a foundational concept in game theory that defines a fair and efficient outcome for two-party bargaining problems based on axioms of rationality and symmetry.
-
C.
A Treatise on Probability
A Treatise on Probability is John Maynard Keynes’s influential 1921 work that develops a logical and philosophical theory of probability, challenging classical and frequency-based interpretations.
-
D.
De ratiociniis in ludo aleae
De ratiociniis in ludo aleae is a pioneering 17th-century treatise on probability theory, particularly as applied to games of chance.
-
E.
Oskar Morgenstern
Oskar Morgenstern was an Austrian-American economist best known as the co-founder of game theory through his seminal work "Theory of Games and Economic Behavior" with John von Neumann.
- F. None of above. chosen
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
decision theory
ⓘ
economic theory ⓘ mathematician ⓘ normative theory of choice ⓘ physicist ⓘ theory of rational choice under risk ⓘ |
| appliesTo |
choices among risky lotteries
ⓘ
decisions under risk ⓘ |
| assumes |
agents have a utility function over outcomes
ⓘ
expected utility axiom ⓘ independence axiom ⓘ preferences are continuous ⓘ preferences over lotteries are complete ⓘ preferences over lotteries are transitive ⓘ |
| characterizes | rational choice under risk ⓘ |
| coauthored | Theory of Games and Economic Behavior ⓘ |
| contrastsWith | expected value maximization of monetary payoffs ⓘ |
| coreIdea | rational agents maximize expected utility rather than expected monetary value ⓘ |
| criticizedBy | prospect theory ⓘ |
| criticizedFor |
inability to explain Allais paradox
ⓘ
inability to explain Ellsberg paradox ⓘ violations of independence axiom in empirical data ⓘ |
| describedIn | Theory of Games and Economic Behavior ⓘ |
| developedBy |
John von Neumann
ⓘ
Oskar Morgenstern ⓘ |
| entails | risk attitudes are captured by curvature of utility function ⓘ |
| field |
decision theory
ⓘ
economics ⓘ game theory ⓘ |
| formalizedBy | von Neumann–Morgenstern utility theorem ⓘ |
| hasVariant | von Neumann–Morgenstern expected utility theory ⓘ |
| implies | choices can be represented as maximization of expected utility ⓘ |
| influenced |
finance theory
ⓘ
game theory ⓘ
linked to:
Theory of Games and Economic Behavior
modern microeconomic theory ⓘ risk analysis ⓘ welfare economics ⓘ |
| influencedBy | Bernoulli’s theory of utility ⓘ |
| knownFor | co-founding expected utility theory ⓘ |
| mathematicalForm | EU(a)=Σ p_i u(x_i) over possible outcomes x_i with probabilities p_i ⓘ |
| publicationYear | 1944 ⓘ |
| requires | cardinal utility up to positive affine transformations ⓘ |
| usedIn |
cost–benefit analysis
ⓘ
expected utility maximization models in macroeconomics ⓘ insurance economics ⓘ portfolio choice theory ⓘ |
| usesConcept |
lottery over outcomes
ⓘ
probability distribution over outcomes ⓘ utility function ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: expected utility theory (with John von Neumann) Description of subject: Expected utility theory (with John von Neumann) is a foundational framework in economics and decision theory that models how rational agents make choices under uncertainty by maximizing the expected value of a utility function.
Referenced by (14)
Full triples — surface form annotated when it differs from this entity's canonical label.
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
subject linked to:
expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
subject linked to:
expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
subject linked to:
prospect theory
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)
linked to: expected utility theory (with John von Neumann)