Daniel Bernoulli's investigations of the St. Petersburg paradox gave rise to a hypothesis about a form of this concept that was later explained by the axioms of completeness, transitivity, independence, and continuity in a theory named for von Neumann and Morgenstern.
An exponential function measuring this concept incorporates risk aversion and underlies entropic risk measures. Daniel Bernoulli's investigations of the St. Petersburg paradox gave rise to a hypothesis about a form of this concept that was later explained by the axioms of completeness, transitivity, independence, and continuity in a theory named for von Neumann and Morgenstern. Kahneman and Tversky's prospect theory is an alternative to the (*) "expected" hypothesis of this concept. It is held constant along an indifference curve. For 10 points, name this economics concept that measures preference for goods and services, which diminishes marginally.
An exponential function measuring this concept incorporates risk aversion and underlies entropic risk measures.
marginal utility [or expected utility]