Just, David R.; Peterson, Hikaru Hanawa - In: American Journal of Agricultural Economics 92 (2010) 1, pp. 16-27
We proffer a method to assess the adequacy of expected utility theory (EUT) in empirical studies involving discrete and continuous choices. The method calibrates a utility function to revealed choices and rejects EUT for absurd degrees of implied concavity over the wealth at risk. We find EUT...