Search Results - subject:"Utility theory"

A multiplicative concept for random utility

Brilon, Werner; Dette, Holger - 2002

The paper introduces a new type of random utility model. Here the random term is formulated as a multiplicative factor to express the random effects of the utility together with deterministic utility aspects. Some arguments are given why this multiplicative approach is preferable over the...

Persistent link: https://www.econbiz.de/10009772065

Scarcity and appropriative competition

Grossman, Herschel I.; Mendoza, Juan - 2002

This paper formalizes the commonsensical hypothesis that resource scarcity causes a large allocation of time and effort to appropriative competition. Our main innovation is to model explicitly the positive intertemporal effect of consumption on the probability of survival. The critical...

Persistent link: https://www.econbiz.de/10011504895

A dynamic utility maximization model for product category consumption

Oest, Rutger van; Franses, Philip Hans; Paap, Richard - 2002

It is conceivable that the whether to buy and how much tobuy decisions in the purchasing process of households areinfluenced by the inventory process. In this paper we thereforeput forward a model for consumption, where we rely on establishedeconomic theory. We incorporate this model in a model...

Persistent link: https://www.econbiz.de/10011327525

A joint framework for category purchase and consumption behavior

Oest, Rutger van; Paap, Richard; Franses, Philip Hans - 2002

We propose a consistent utility-based framework to jointly explain a household's decisions on purchase incidence, brand choice and purchase quantity. The approach differs from other approaches, currently available in the literature, as it is able to take into account consumption dynamics. In the...

Persistent link: https://www.econbiz.de/10011327824

Do wages really compensate for risk aversion and skewness affection?

Hartog, Joop; Vijverberg, Wim P. M. - 2002

Utility theory suggests that foreseeable risk should increase the compensation for work. This paper expands on this … notion: on basis of utility theory, people should care not only about risk but also about the skewness in the distribution of …

Persistent link: https://www.econbiz.de/10011405939

A reply to Gandjour and Gafni

Bleichrodt, Han; Filko, Martin - In: Journal of Health Economics 29 (2010) 2, pp. 329-331

Gandjour and Gafni (2010) criticize our paper on two counts. Their first point of criticism is ill-founded and results from many mathematical mistakes that they make. The second is due to a lack of understanding of the general principles of empirical research.

Persistent link: https://www.econbiz.de/10008499147

On the surprising finding that expected utility is literally computed in the brain

Vromen, Jack - In: Journal of Economic Methodology 17 (2010) 1, pp. 17-36

to expected utility theory, if that theory is taken to be a theory about individual and aggregate behavior. Findings that … in some particular tasks expected utility theory predicts neural activity fairly accurately do not imply that expected … utility theory also yields accurate predictions of behavior at 'higher levels', individual behavior and aggregate behavior …

Persistent link: https://www.econbiz.de/10008503082

Rationality on the rise: Why relative risk aversion increases with stake size

Fehr-Duda, Helga; Bruhin, Adrian; Epper, Thomas; … - In: Journal of Risk and Uncertainty 40 (2010) 2, pp. 147-180

Persistent link: https://www.econbiz.de/10008552547

Endowment effects? “Even” with half a million on the table!

Blavatskyy, Pavlo; Pogrebna, Ganna - In: Theory and Decision 68 (2010) 1, pp. 173-192

Persistent link: https://www.econbiz.de/10008480666

What are the minimal requirements of rational choice? Arguments from the sequential-decision setting

Steele, Katie - In: Theory and Decision 68 (2010) 4, pp. 463-487

Persistent link: https://www.econbiz.de/10008615295