✓ checked
trust me, bro:
here is the receipt.
the claim
Diminishing marginal utility implies risk aversion in expected utility theory
the verdict
SUPPORTED
the evidence backs this
Recorded sources
9 sources for · 0 against
Is it true that diminishing marginal utility implies risk aversion in expected utility theory?
Yes. Within expected utility theory, a concave utility function representing diminishing marginal utility mathematically entails that an individual will reject a fair gamble, which is the definition of risk aversion.
Verdict: SUPPORTED · 9 sources for, 0 against · Last checked
The analysis
Judged against the evidence record for claims of this kind.
Evidence for · 9
States that diminishing marginal utility implies risk aversion within expected utility hypotheses.
Get citation
Kluwer Academic Publishers: A comprehensive assessment of the role of risk in U.S. agriculture. (2002). Kluwer Academic Publishers. https://archive.org/details/comprehensiveass0000unse_q6m3
See more details
More for · 8
Connects diminishing marginal utility of money to consequences in finance.
Get citation
comp, A. S. H. (1976). Macmillan: The theory of business finance : a book of readings. Macmillan. https://archive.org/details/theoryofbusiness0000arch_a6e3
Explicitly states that diminishing marginal utility of money implies risk-averse behavior in expected utility models.
Get citation
Howard, K. (2013). Cambridge University Press: Insurance and Behavioral Economics : Improving Decisions in the Most Misunderstood Industry. Cambridge University Press. https://archive.org/details/insurancebehavio0000kunr
States risk aversion implies diminishing marginal utility from consumption under expected utility.
Get citation
(Seth), A. S. (2005). Cambridge University Press: The cost of capital : intermediate theory. Cambridge University Press. https://archive.org/details/costofcapitalint0000armi
States that if an individual has diminishing marginal utility of wealth, they exhibit risk aversion.
Get citation
O, Z. R. (1994). HarperCollins College Publishers: Benefit-cost analysis in theory and practice. HarperCollins College Publishers. https://archive.org/details/benefitcostanaly0000zerb
Assumes a framework where consumers are risk averse and diminishing marginal utility applies.
Get citation
OpenAIRE: You get what you want: A note on the economics of bad news. (2015). OpenAIRE. https://doi.org/10.1016/j.infoecopol.2014.10.003
Links Von Neumann-Morgenstern expected utility, diminishing marginal utility, and risk aversion.
Get citation
OpenAIRE: Conducting Cost Benefit Analysis in Expected Utility Units Using Revealed Social Preferences. (2023). OpenAIRE. https://doi.org/10.11588/heidok.00032674
States diminishing marginal utility of money implies risk aversion.
Get citation
OpenAIRE: Accounting for risk aversion, income distribution and social welfare in cost-benefit analysis for flood risk management. (2017). OpenAIRE. https://explore.openaire.eu/
Uses expected utility maximization and notes participants display concave utility curves.
Get citation
C, C., A, F., T, R., & W, P. (2026). Individual Utilities of Life Satisfaction Reveal Inequality Aversion Unrelated to Political Alignment.. peer-reviewed literature. https://doi.org/10.1007/s11205-026-03854-4
Related receipts
- Is it true that the marginal utility of losses diminishes in prospect theory? SUPPORTED
- Second-order stochastic dominance implies ranking distributions by expected utility for risk-averse agents SUPPORTED
- Is it true that marginal cost curves universally exhibit a U-shape due to diminishing marginal returns? OVERSTATED
What does the evidence say?
Judged against the evidence record for claims of this kind.
Receipt History
first checked05 Aug 2026
judged → SUPPORTED · 7505 Aug 2026
Anyone with this link can read the claim and its public receipt, including any
personal information in that text. Open permanent receipt.
Check your own claim
Challenge the receipt
Requests are recorded for review. This does not start an automatic check
or guarantee a response time.
Citation formatting by citeproc-js (Frank Bennett) and the Citation Style Language project. Source and licenses.
This receipt is an automated verdict against our published method · not an opinion about any author or publication.
Terms · Privacy · How verdicts work
Terms · Privacy · How verdicts work