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expected utility hypothesis

hypothesis that the subjective value of a gamble is the statistical expectation of one’s valuations (which may differ from dollar values) of the gamble’s outcomes

en-GB/ɪkˈspɛktɪd juːˈtɪlɪtɪ haɪˈpɒθəˌsɪs/
en-US/ɪkˈspɛktəd juˈtɪlɪti haɪˈpɑθəsəs/

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economic theorydecision theoryhypothesis