%0 Journal Article
%T Expected Utility from Multinomial Second-order Probability Distributions
%A Sundgren
%A David
%J Polibits
%D 2010
%I Scientific Electronic Library Online
%X we consider the problem of maximizing expected utility when utilities and probabilities are given by discrete probability distributions so that expected utility is a discrete stochastic variable. as for discrete second-order distributions, that is probability distributions where the variables are themselves probabilities, the multinomial family is a reasonable choice at least if first-order probabilities are interpreted as relative frequencies. we suggest a decision rule that reflects the uncertainty present in distribution-based probabilities and utilities and we show an example of this rule in action with multinomial second-order distributions.
%K imprecise probability. second-order probability
%K discrete probability distributions
%K multinomial distributions
%K expected utilty.
%U http://www.scielo.org.mx/scielo.php?script=sci_abstract&pid=S1870-90442010000200009&lng=en&nrm=iso&tlng=en