How Economists Came to Accept Expected Utility Theory: The Case of Samuelson and Savage

Journal of Economic Perspectives, Vol. 30(2), Spring 2016.

22 Pages Posted: 27 Feb 2016

See all articles by Ivan Moscati

Ivan Moscati

University of Insubria - Department of Economics; Bocconi University - Baffi Carefin Centre; London School of Economics & Political Science (LSE) - Centre for Philosophy of Natural and Social Science (CPNSS)

Date Written: February 26, 2016

Abstract

Based on the correspondence between Paul Samuelson, Leonard Jimmie Savage, Milton Friedman and Jacob Marschak between May and September 1950, the article reconstructs the joint intellectual journey that led Samuelson to accept expected utility theory and Savage to revise his initial motivations for supporting it.

Keywords: Expected Utility Theory, Independence Axiom, Sure-Thing Principle, Samuelson, Savage, Friedman, Marschak

JEL Classification: B21, B31, D81

Suggested Citation

Moscati, Ivan, How Economists Came to Accept Expected Utility Theory: The Case of Samuelson and Savage (February 26, 2016). Journal of Economic Perspectives, Vol. 30(2), Spring 2016., Available at SSRN: https://ssrn.com/abstract=2738437

Ivan Moscati (Contact Author)

University of Insubria - Department of Economics ( email )

Via Monte Generoso 71
Varese, 21100
Italy

Bocconi University - Baffi Carefin Centre ( email )

Via Roentgen 1
Milan
Italy

London School of Economics & Political Science (LSE) - Centre for Philosophy of Natural and Social Science (CPNSS) ( email )

London
United Kingdom

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