Search Results - subject:"Utility theory"

Contingent Claim Pricing In A Dual Expected Utility Theory Framework

Corradini, Massimiliano; Gheno, Andrea - Dipartimento di Economia, Università degli Studi di Roma 3 - 2007

This paper investigates the price for contingent claims in a dual expected utility theory framework, the dual price …

Persistent link: https://www.econbiz.de/10005590613

Krantz, David H.; Kunreuther, Howard C. - In: Judgment and Decision Making 2 (2007) June, pp. 137-168

We propose a constructed-choice model for general decision making. The model departs from utility theory and prospect … insurance purchases and other protective decisions. Neither expected-utility theory nor prospect theory can explain these …

Persistent link: https://www.econbiz.de/10005773125

Models of Stochastic Choice and Decision Theories: Why Both are Important for Analyzing Decisions

Blavatskyy, Pavlo; Pogrebna, Ganna - Institut für Volkswirtschaftslehre, … - 2007

Economic research offers two traditional ways of analyzing decision making under risk. One option is to compare the goodness of fit of different decision theories using the same model of stochastic choice. An alternative way is to vary models of stochastic choice combining them with only one or...

Persistent link: https://www.econbiz.de/10005628002

Preferences for Shifts in Probabilities and Expected Utility Theory

Cantalá, David - In: Estudios Económicos 22 (2007) 1, pp. 99-109

We translate preferences over lotteries into preferences over “shifts in probabilities”. We define the independence axiom for such preferences. Next we construct and expected utility function to represent the preferences and present the corresponding additive geometry.

Persistent link: https://www.econbiz.de/10005628729

Global Portfolio Optiomization Revisted: A Least Discrimination Alternative to Black-Litterman

Pezier, Jacques - Henley Business School, University of Reading - 2007

Global portfolio optimization models rank among the proudest achievements of modern finance theory, but practitioners are still struggling to put them to work. In 1992, Black and Litterman put the problem down to difficulties portfolio managers have in extrapolating views about some expected...

Persistent link: https://www.econbiz.de/10005558332

Teorie očekávaného užitku versus kumulativní prospektová teorie: empirický pohled (available in Czech only)

Skořepa, Michal - In: Czech Economic Review 1 (2007) 2, pp. 180-195

This paper pits expected utility theory and cumulative prospect theory against each other as regards their descriptive … utility theory is not descriptively valid. The most promising alternative, cumulative prospect theory, is then presented in … either. It is concluded that expected utility theory is likeyl to remain the core instrument for modeling human decision …

Persistent link: https://www.econbiz.de/10005698647

Poptávková funkce na trhu s pojištěním: porovnání maximalizace paretovské pravděpodobnosti přežití s teorií EUT von Neumanna a Morgensterna a s prospektovou teorií Kahnemana a Tverského (available in Czech only)

Hlavacek, Jiri; Hlaváček, Michal - In: Czech Economic Review 1 (2007) 2, pp. 116-134

other models: the expected-utility theory (von Neumann, Morgenstern) and the asymmetric value function (Kahneman, Tversky …

Persistent link: https://www.econbiz.de/10005698651

Kahneman and Tversky and the Origin of Behavioral Economics

Heukelom, Floris - Tinbergen Institute - 2007

expected utility theory (EUT). Bernoulli’s work is taken up by psychophysics which in turn plays an important role in the …

Persistent link: https://www.econbiz.de/10005137090

What Simon says

Heukelom, Floris - Tinbergen Institute - 2007

This paper provides an overview of the work of Herbert Simon and his ideas about rational decision making. By his own standards, Simon is an economist who works in the tradition of Adam Smith and Alfred Marshall. The central theme in Simon’s research is how human beings organize themselves in...

Persistent link: https://www.econbiz.de/10005137230

Optimal income taxation in the presence of tax evasion: Expected utility versus prospect theory

Dhami, Sanjit; al-Nowaihi, Ali - Department of Economics, Leicester University - 2007

The predictions of expected utility theory (EUT) applied to tax evasion are flawed on two counts: (i) They are … prospect theory. Sanjit Dhami Ali al-Nowaihiy 27 September 2007 Abstract The predictions of expected utility theory (EUT … liberalism versus paternalism in behavioral economics. Keywords: Prospect theory, Expected utility theory, Tax evasion, Optimal …

Persistent link: https://www.econbiz.de/10005230636