The Von Neumann-Morgenstern theorem gives conditions under which this quantity can be defined for a rational actor. In an Edgeworth box, all gradients of this quantity are parallel along the contract curve. While only order matters in the "ordinal" type, a player with a concave "cardinal" type of this curve would not enter some lotteries with posit
The Von Neumann-Morgenstern theorem gives conditions under which this quantity can be defined for a rational actor. In an Edgeworth box, all gradients of this quantity are parallel along the contract curve. While only order matters in the "ordinal" type, a player with a concave "cardinal" type of this curve would not enter some lotteries with positive expected money payoff. A distribution of resources where this could not be increased for anyone without decreasing it for someone else is Pareto efficient. This quantity is constant along indifference curves. Rational people try to maximize, for 10 points, what measure of satisfaction?
The Von Neumann-Morgenstern theorem gives conditions under which this quantity can be defined for a rational actor.
utility