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Preferred term

expected utility  

Definition

  • As part of rational choice theory, the concept of expected utility is used to elucidate decisions made under conditions of risk. The expected utility of an action is a function of both an agent's estimation of the utility of the various outcomes possible given that action and the likelihood of those outcomes occurring. [Source: Encyclopedia of Business Ethics and Society; Expected Utility]

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URI

https://concepts.sagepub.com/social-science/concept/expected_utility

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