Savage's Theorem

Savage's Theorem states that if you have a set of possible outcomes, a way to assign probabilities to them, and a set of preferences over these outcomes, then your preferences can be represented as if you are maximizing the expected value based on those probabilities. In simple terms, it shows that consistent decision-making under uncertainty can be modeled by the idea that individuals choose options to maximize their expected benefits, combining both the likelihood of outcomes and their personal preferences, provided certain rationality conditions are met.