tell the difference between and will lead to indifference not because of a consistency of preferences, but because of a misperception of the senses. Moreover, human senses adapt to a given level of stimulation and then register changes from that baseline.

Construction

Suppose a certain agent has a preference ordering over random outcomes (lotteries). If the agent can be queried about his preferences, it is possible to construct a cardinal utility function that represents these preferences. This is the core of the von Neumann-Morgenstern utility theorem.

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