Bélyácz, Iván (2024) Contradictions between the theory of choice and practical solutions of economic decision making. ECONOMY AND FINANCE: ENGLISH-LANGUAGE EDITION OF GAZDASÁG ÉS PÉNZÜGY, 11 (4). pp. 335-370. ISSN 2415-9379
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Abstract
The theory of choice between variants is one of the most important fields of economics mainly because of the future implications of such decisions. The paperaddresses three particular contradictions in the development of the theory. Thefirst appears between Daniel Bernoulli and von Neumann–Morgenstern. Whilethe former considers utility as the logarithm function of money wealth, the latteridentifies it with the sum of money wealth. The second contradiction is relatedto the treatment of psychological factors, which arises in the use of objective andsubjective probability. The third contradiction is a distinction between ordinaland cardinal utility, which used to be strong, but has become less relevant recently. The train of thought reveals the main nodes of theoretical development.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | rational choice, ordinal and cardinal utility, psychological factor, decision theory |
| Subjects: | H Social Sciences / társadalomtudományok > HC Economic History and Conditions / gazdaság története és alapelvek |
| SWORD Depositor: | MTMT SWORD |
| Depositing User: | MTMT SWORD |
| Date Deposited: | 20 Dec 2024 07:29 |
| Last Modified: | 20 Dec 2024 07:29 |
| URI: | https://real.mtak.hu/id/eprint/212291 |
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