chapter  6
The Contribution of Expected-Utility Theory to the Study of International Conflict
Pages 28

Expected-utility theory originated as an explanation of microeconomic behavior. Although the subject of some controversy (Tversky and Kahneman 1981), expected-utility theory is widely recognized as being at the core of contemporary microeconomics. Its prominence is partially due to the great success its proponents have enjoyed in predicting the aggregated economic decisions of individuals and partially due to its logical elegance.