Consequentialism and bayesian rationality in normal form games

Peter J. Hammond

pp. 187-196

in: Werner Leinfellner, Eckehart Köhler (eds), Game theory, experience, rationality, Berlin, Springer, 1998

Abstract

In single-person decision theory, Bayesian rationality requires the agent first to attach subjective probabilities to each uncertain event, and then to maximize the expected value of a von Neumann—Morgenstern utility function (or NMUF) that is unique up to a cardinal equivalence class. When the agent receives new information, it also requires subjective probabilities to be revised according to Bayes' rule.