In this paper I consider a complex decision problem where subjects have to cope with a time horizon of uncertain … economic theory suggests to solve the decision problem. But since real decision makers can hardly be expected to behave …

commodities as food items. Using utility functions we can measure the welfare loss, caused by such heuristics, and to what extent …-Douglas utility function. General utility functions will also be considered. Part II will study exchange economies. …

This article investigates whether decision makers intuitively optimize close to the normative prediction in … entrepreneurial decision situations where their time must be allocated between a wage job and a newly formed venture. We offer an … analytical model based on maximizing expected utility, and derive an optimal time allocation strategy for decreasing, constant …

We consider an investor maximizing his expected utility from terminal wealth with portfolio decisions based on the … cost is balanced out by the informational advantage in terms of maximal expected utility. We calculate this value for … common utility functions in the setting of a complete market modeled by general semimartingales. The main tools are results …

we focus on are the calculation of the additional utility of the insider and a study of his free lunch possibilities. The … examples are given to illustrate additional utility and free lunch possibilities. In particular, if the insider has advance …

expected logarithmic utility from terminal wealth. While the ordinary investor's portfolio decisions are based on a public … expected logarithmic utility in terms of a relative entropy. This allows us to provide simple conditions on G for the … finiteness of this additional utility and to show that it is basically given by the entropy of G. -- insider trading ; entropy …