expected_utility: Calculate the expected utility from a bet

In AlexB4891/phenomenology: What the Package Does (One Line, Title Case)

Calculate the expected utility from a bet

Description

Calculate the expected utility from a bet

Usage

expected_utility(
  earnings = c(),
  losings = c(),
  probabilities = c(),
  u_function = function(x) {     x },
  endowment = 0
)

Arguments

earnings	value you get if you win the bet
losings	value you loose if you do not win the bet (always negative numbers)
probabilities	set of probabilities for the options of the bet (the order should be as follows c(earnings,losings) )
u_function	Form of the utility function
endowment	Initial endowment

Value

Expected utility from a bet

AlexB4891/phenomenology documentation built on March 29, 2022, 8:56 p.m.