Expected-Utility Maximization Theorem/Historical Note

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Historical Note on Expected-Utility Maximization Theorem

The idea behind the Expected-Utility Maximization Theorem goes back at least as far as Daniel Bernoulli, who raised the question in his Specimen Theoriae Novae de Mensura Sortis of $1738$ (translated 1954: Exposition of a New Theory on the Measurement of Risk (Econometrica Vol. 22: pp. 23 – 36)).

It was proved by John von Neumann and Oskar Morgenstern in their Theory of Games and Economic Behaviour, 2nd ed. of $1947$.


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