## Abstract

We present an axiomatization of expected utility from the frequentist perspective. It starts with a preference relation on the set of infinite sequences with limit relative frequencies. We consider three axioms parallel to the ones for the von Neumann-Morgenstern (vN-M) expected utility theory. Limit relative frequencies correspond to probability values in lotteries in the vN-M theory. This correspondence is used to show that each of our axioms is equivalent to the corresponding vN-M axiom in the sense that the former is an exact translation of the latter. As a result, a representation theorem is established: The preference relation is represented by an average of utilities with weights given by the relative frequencies.

Original language | English |
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Pages (from-to) | 9-25 |

Number of pages | 17 |

Journal | Economic Theory |

Volume | 53 |

Issue number | 1 |

DOIs | |

Publication status | Published - May 2013 |

## Keywords

- Decision theory
- Expected utility theory
- Frequentist theory of probability
- Objective probability