Take the 2-minute tour ×
Mathematics Stack Exchange is a question and answer site for people studying math at any level and professionals in related fields. It's 100% free, no registration required.

For example, the function is given by $-a(y_0)^{-b} - cy_1^{-d}$. What restrictions on the parameters are needed to normalize this?

To my knowledge, the von Neumann-Morgernstern function is the summation of the probabilities and the felicity function.

So summation of the probabilities must be 1, does this imply $-a - b = 1$? Also how do I normalize the other part? I think that using $\mathrm e^{-b \log y_0}$ might work. Can someone tell me if this is right?

share|improve this question
What is felicity function? Do you mean utility function? –  Srivatsan Dec 4 '11 at 23:26

Your Answer


By posting your answer, you agree to the privacy policy and terms of service.

Browse other questions tagged or ask your own question.