[New Entry by Lara Buchak on May 16, 2022.]
Expected utility theory, which holds that a decision-maker ought to maximize expected utility, is the prevailing theory of instrumental rationality. Nonetheless, four major challenges have arisen to the claim that the theory characterizes all rational preferences. These challenges are the phenomena of infinite or unbounded value, incommensurable goods, imprecise probabilities, and risk-aversion. The challenges have been accompanied by alternative theories that attempt to do better….
Originally appeared on Stanford Encyclopedia of Philosophy Read More