Week 4: Expected Utility Theory and the Independence Axiom

After this week, you should…

• be able to find the expected utility of a lottery.
• be able to explain the Independence Axiom.

Lecture 1 (Sep 22:   slides)

• Rationality and Utility Theory
• Reiss, Rational Choice
• Expected Utility
• Independence

Lecture 2 (Sep 24:   slides)

• Rationality and Utility Theory
• Reiss, Rational Choice

Weekly Assignments

Problem Set 3 is due Sep 26.

Make sure that you have answered all the participation questions for Week 4 asked during the lectures (the questions asked on Tophat).

Ask questions on Piazza!