Social entrepreneurship through cultural heritage-CHEER - EN

Savage (1954) developed the axiomatic subjective expected utility (SEU) theory in which a decision maker chooses between alternatives (or strategies) in the presence of risk. Savage capitalized on the assumption that the decision maker will always tend to seek pleasure andavoid pain and as such, he will make the following computations:

i) Subjective utility that accounts on the individuals judged weightings of utility, rather than onobjective criteria.

ii) Subjective probability that accounts on the individuals estimates of likelihood, rather than onobjective statistical computations.