This paper studies a consumption-portfolio problem where money enters the agent's utility function. We solve the corresponding Hamilton-Jacobi-Bellman equation and provide closed-form solutions for the optimal consumption and portfolio strategy both in an infinite- and finite-horizon setting....

In this paper, we develop a model that captures the potential conflict between two individuals who follow different fairness principles in bargaining. This model is used to analyse the influence of fairness motivation on the possibility of reaching an agreement in bargaining, and to examine the...

In this paper we estimate a system of supply functions for income generating criminal activities. Our interest lies in determining the degree of substitutability or complementarily which exists between these alternative sources of income and in assessing the “net” system-wide response of...

This note considers a hypothetical experiment designed to give meaning to the concept of one "type" of utility function being "preferred" to another. In the course of presenting the outlines of such a conceptual experiment, the terms type and preferred will be defined. The conclusion-albeit at a...

We characterize the boundaries of the set of transfers implementing a given allocation rule without imposing any assumptions on the agent's type space or utility function besides quasi-linearity. In particular, we characterize the pointwise largest and the pointwise smallest transfer that...

Given a set of alternatives with multiple attributes, I characterize the set of preference profiles that are representable by weighted versions of a class of utility functions indexed by a parameter δ 0, where δ ≥ 1 corresponds to the set of Minkowski’s metric functions. In light of the...