The maximum entropy principle can be used to assign utility values when only partial information is available about the decision maker’s preferences. In order to obtain such utility values it is necessary to establish an analogy between probability and utility through the notion of a utility...

Solutions to a series of apparent paradoxes arising in problems dealing with resources allocation under mutually altruistic conditions are presented. In particular, Bergstrom's lovers’ dilemma (J. Econ. Perspect. 3 (1989) 165) is dealt with as an explicit example of such apparent paradoxes....