Dictionary :: People

Glossary of game theory terms.

Bernoulli, Daniel

Daniel Bernoulli
Eighteenth century Dutch mathematician codified the notion of expected utility as a revolutionary approach to risk. He noted that people do not maximize expected returns but expected utility. He also is credited for recognizing the notion of diminishing returns (each additional item is worth less than the last) and demonstrating the St. Petersburg Paradox.

updated: 12 August 2005
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