Search Results - subject:"utility function"

Expected utility theory on mixture spaces without the completeness axiom

McCarthy, David; Mikkola, Kalle; Thomas, Teruji - In: Journal of mathematical economics 97 (2021), pp. 1-16

Persistent link: https://www.econbiz.de/10013183696

Schooling and small stakes risk aversion : insights from a rural-poor community

Fakir, Adnan M. S. - In: Economics letters 207 (2021), pp. 1-4

Persistent link: https://www.econbiz.de/10013170548

The Degree Measure as Utility Function over Positions in Networks

van den Brink, Rene J.R.; Rusinowska, Agnieszka - 2017

measure as a von Neumann-Morgenstern expected utility function reflecting preferences over being in different positions in … represented by a utility function that is a multiple of the degree centrality measure. We show this in three steps. First, we … utility function is equal to a multiple of the degree measure if and only if it represents a regular preference relation that …

Persistent link: https://www.econbiz.de/10011819458

Expected Comparative Utility Theory

Robert, David - 2017

This paper proposes a new theory of rational choice. Contra standard decision theory, this paper roughly argues that an agent should rank her choice options (in terms of how choiceworthy they are) according to their expected comparative utility. For any number of alternative options, a, b, c, d...

Persistent link: https://www.econbiz.de/10014120783

Information-Dependent Expected Utility

Liang, Yucheng - 2017

In decision problems under uncertainty, the subjective evaluation of an outcome can depend on the information content of its realization. To accommodate this dependence, we introduce and axiomatize a model of information-dependent expected utility by allowing the utility of an outcome to...

Persistent link: https://www.econbiz.de/10014125232

Reference Dependent Preferences and the EPK Puzzle

Grith, Maria - 2017

Supported by several recent investigations, the empirical pricing kernel (EPK) puzzle might be considered a stylized fact. Based on an economic model with state dependent preferences for the financial investors, we want to emphasize a microeconomic view that succeeds in explaining the puzzle. We...

Persistent link: https://www.econbiz.de/10012966536

Basic Portfolio Construction and Expected Utility

White, James - 2017

A practical guide to constructing a long-term investment portfolio using the theory of expected utility as developed in Part I. Our goal here is to address the portfolio at the macro level of asset-class selection and scaling; more micro issues will be discussed in later notes. We see a special...

Persistent link: https://www.econbiz.de/10012967332

Risk Attitudes in Axiomatic Decision Theory – A Conceptual Perspective

Baccelli, Jean - 2017

In this paper, I examine the decision-theoretic status of risk attitudes. I start by providing evidence showing that the risk attitude concepts do not play a major role in the axiomatic analysis of the classic models of decision-making under risk. This can be interpreted as reflecting the...

Persistent link: https://www.econbiz.de/10012967863

Expected Utility Theory and Experimental Utility Measurement, 1950–1985. From Confidence to Skepticism

Moscati, Ivan - 2017

The paper reconstructs the history of the experimental attempts to measure the cardinal utility of money between 1950 and 1985 within the framework provided by expected utility theory (EUT). It is shown that this history displays a definite trajectory: from the confidence in EUT and the...

Persistent link: https://www.econbiz.de/10012967989

Finding Common Ground When Experts Disagree : Belief Dominance Over Portfolios of Alternatives

Baker, Erin - 2017

We address the problem of choosing a portfolio of policies under “deep uncertainty.” We introduce the idea of belief dominance as a way to derive a set of non-dominated portfolios and robust individual alternatives. Our approach departs from the tradition of providing a single recommended...

Persistent link: https://www.econbiz.de/10012968609