# Answer to Question #77624 in Microeconomics for Dinal

Question #77624

The Neumann Morgenstern approach to choice under certainty.

Expert's answer

The von Neumann-Morgenstern utility theorem shows that, under certain axioms of rational behavior, a decision-maker faced with risky (probabilistic) outcomes of different choices will behave as if he or she is maximizing the expected value of some function defined over the potential outcomes at some specified point in the future.

Source:

https://en.m.wikipedia.org/wiki/Von_Neumann–Morgenstern_utility_theorem

Source:

https://en.m.wikipedia.org/wiki/Von_Neumann–Morgenstern_utility_theorem

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