This paper proposes a method for a multiproduct model decomposition of GDP components by expenditure which allows the use of several different price indices in the same model. The decomposition does not link the products to imports or exports, therefore, it imposes no restrictions on the...

The mean-variance utility postulates that random variables with the same mean and variance should be equally desirable. This paper presents and discusses necessary and sufficient preference-based axioms for the existence of mean-variance utility in which any condition on variances but...

This paper studies necessary and sufficient preference-based conditions for differentiability of risk averse (prudent, or temperate) von Neumann-Morgenstern utility functions. The very idea to devise those conditions is based on the reverse claim of an old observation by Arrow that a risk-averse...

We develop a theory of “risky utilities”, i.e. private firms that manage an infrastructure for public service, and that may be tempted to engage in excessively risky activities, such as reducing maintenance expenditures (at the risk of provoking a break-down of the system) or in speculation...

We investigate profit-maximizing versioning plans for an information goods monopolist. The analysis employs data obtained from a web-based field experiment in which potential buyers were offered information goods in varied price-quality configurations. Maximum simulated likelihood (MSL) methods...

Utility functions offer a means to encode objectives and preferences in investor portfolios. The functions allow one to place a score on outcomes and then identify optimal portfolios by maximizing utility. The central theme of this article is that utility functions should be tailored to the...