5. Ramsey and Savage

  1. Giovanni Parmigiani1 and
  2. Lurdes Y. T. Inoue2

Published Online: 1 DEC 2010

DOI: 10.1002/9780470746684.ch5

Decision Theory

Decision Theory

How to Cite

Parmigiani, G. and Inoue, L. Y. T. (2009) Ramsey and Savage, in Decision Theory, John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9780470746684.ch5

Author Information

  1. 1

    Johns Hopkins University, Baltimore, USA

  2. 2

    University of Washington, Seattle, USA

Publication History

  1. Published Online: 1 DEC 2010
  2. Published Print: 17 APR 2009

Book Series:

  1. Wiley Series in Probability and Statistics

Book Series Editors:

  1. Walter A. Shewhart and
  2. Samuel S. Wilks

ISBN Information

Print ISBN: 9780471496571

Online ISBN: 9780470746684

SEARCH

Keywords:

  • Ramsey and Savage;
  • von Neumann–Morgenstern expected utility theory (NM theory);
  • Ramsey's theory;
  • Savage's theory - notation and overview;
  • the sure thing principle;
  • conditional and a posteriori preferences;
  • subjective probability;
  • utility and expected utility;
  • representation of lotteries of Allais paradox in terms of Savage's theory

Summary

This chapter contains sections titled:

  • Ramsey's theory

  • Savage's theory

  • Allais revisited

  • Ellsberg paradox

  • Exercises