The probability triangle (also called the Marschak-Machina triangle) allows for compact and intuitive depictions of risk preferences. Here, we develop an analogous tool for choice under uncertainty - the ambiguity triangle - and show that indifference curves in this triangle capture preferences...

This paper deals with optimal consumption over time. The starting point is a dynamic utility function which is exponential where the exponent is quadratic in the observable consumption outlays. The approach is shown to be a generalization of Hall's formulation of the consumption relation. While...

This paper deals with optimal consumption over time. The starting point is a dynamic utility function which is exponential where the exponent is quadratic in the observable consumption outlays. The approach is shown to be a generalization of Hall's formulation of the consumption relation. While...

For a nonprofit organization that provides individualized services to different customers a natural rule is at-cost pricing — to cover for labor, administrative and other expenses incurred in providing the service to each customer. This not only accomplishes zero profits (losses) but also zero...