We present a theory of expected utility with state-dependent linear utility function for monetary returns, that includes results on first order stochastic dominance, mean-preserving spread, increasing-concave linear utility profiles and risk aversion. As an application of the expected utility theory developed here, we analyze the contract that a monopolist would offer in an insurance market that allowed for partial coverage of loss. We also define a utility function for monetary returns that in a certain sense reconciles state-dependent constant average utility of money with loss aversion and the Friedman-Savage hypothesis. As an immediate consequence of such a utility function, we obtain a profile of state-dependent linear utility functions for monetary returns, where states of nature correspond to mutually disjoint intervals in which monetary gains and losses may occur.

翻译：本文提出了一种状态依赖的货币收益线性效用函数的期望效用理论，该理论包含对一阶随机占优、均值保持展形、递增凹线性效用剖面及风险厌恶的研究结果。作为所发展期望效用理论的应用，我们分析了垄断者在允许部分损失覆盖的保险市场中将提供的合约。同时，我们定义了一种货币收益效用函数，该函数在特定意义上协调了状态依赖的货币恒定平均效用与损失厌恶及弗里德曼-萨维奇假说。作为此类效用函数的直接推论，我们得到了一组状态依赖的货币收益线性效用函数剖面，其中自然状态对应于货币损益可能发生的互不相交区间。