If my understanding of expected utility theory is correct, it is rational for a decision maker to have subjective utilities for objective consequences.  For example, it can be rational for a decision maker to value 5 dollars twice as much as 4 dollarshowever, it is not rational for a decision maker to value a 100% chance of 5 dollars twice as much as an 80% chance of 5 dollarsThat is, probabilities must be outside of- not taken into account by- subjective utilities.  Is this understanding correct, and if so, why is the theory structured this way?  Note: My understanding is based on Hastie & Dawes (2010), Rational Choice in an Uncertain World.
Why can't subjective utilities take probabilities into account?
decision making;economics;rationality;behavioral economics