Game Theory Cheat Sheet (DRAFT) by [deleted]

Think invest­ment, or the lottery. Risk aversion means every dollar is less valuable than the previous. Risk neutrality means the player is indiff­erent between gambling and receiving expected profit with certainty. Risk seeking means every dollar is more valuable than the previous.

The expected utility of a lottery is the weighted average of prefer­ences of possible outcomes (when the players have "­rat­ional prefer­enc­es."­ It's invariant under affine transf­orm­ations.