Expected utility & risk types

About this app

The St. Petersburg paradox (expected value ∞, yet nobody pays much), Bernoulli utility functions with certainty equivalent (insurance vs. lottery), and the S-shaped prospect value function with loss aversion.

Subject: Data & decisions

More from Data & decisions

• Anchoring effect
• Benford's law
• Berkson's paradox
• Cherry-picking: base period
• Cherry-picking: base period 2.0
• The three-cowboy duel (truel)
• The three-cowboy duel 2.0
• The three means

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