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Expected utility theory and experimental utility measurement, 1950–1985. From confidence to scepticism

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  • Ivan Moscati

Abstract

The paper reconstructs the history of the experimental attempts to measure the cardinal utility of money between 1950 and 1985 within the framework provided by expected utility theory (EUT). It is shown that this history displays a definite trajectory: from the confidence in EUT and the EUT-based measurement of utility of the 1950s to the scepticism that, from the mid-1970s, haunted the validity of EUT as well as the significance of the utility measures obtained through it. By exploring the diverse aspects and causes of this trajectory, the paper covers new ground in the history of both decision theory and utility measurement.

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  • Ivan Moscati, 2017. "Expected utility theory and experimental utility measurement, 1950–1985. From confidence to scepticism," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 24(6), pages 1318-1354, November.
    • Handle: RePEc:taf:eujhet:v:24:y:2017:i:6:p:1318-1354
    DOI: 10.1080/09672567.2017.1378692
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    1. Dhami, Sanjit, 2016. "The Foundations of Behavioral Economic Analysis," OUP Catalogue, Oxford University Press, number 9780198715535.
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