While utility theory deals with situations in which there is no uncertainty, this theory deals with choices individuals make when the outcomes they face are uncertain.Identify the theory.
A)Game theory
B)Expected utility theory
C)Expectation theory
D)Normative theory
E)Self-serving theory

Question

Quizplus · Accepted Answer

Expected utility theory extends the concept of utility to situations where there is uncertainty regarding outcomes, providing a framework for individuals to make decisions based on the expected utility of different choices.

While Utility Theory Deals with Situations in Which There Is