The Expected utility hypothesis was initiated by which Swiss mathematician in 1738?
Expected utility hypothesis In economics, game theory, and decision theory the expected utility hypothesis, concerning people's preferences with regard to choices that have uncertain outcomes (gambles), states that if specific axioms are satisfied, the subjective value associated with an individual's gamble is the statistical expectation of that individual's valuations of the outcomes of that gamble. Initiated by Daniel Bernoulli in 1738, this hypothesis has proved useful to explain some popular choices that seem to contradict the expected value criterion (which takes into account only the sizes of the payouts and the probabilities of occurrence), such as occur in the contexts of gambling and insurance. Until the mid-twentieth century, the standard term for the expected utility was the moral expectation, contrasted with "mathematical expectation" for the expected value.
Émile Borel Félix Édouard Justin Émile Borel (] ; 7 January 1871 – 3 February 1956) was a French mathematician and politician. As a mathematician, he was known for his founding work in the areas of measure theory and probability.