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
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: 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
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