This paper considers value functions for maximization problems where the objective function is maximized subject to several constraints. I show that such value functions exhibit diminishing marginal rates of substitution (MRS) between the resource endowments which define the constraints. For the...

Pension plan participants' characteristic lack of financial sophistication and widespread failure to monitor investments frequently prompts expressions of concern about the potentially large welfare losses such individuals could suffer. I explore this issue by studying the performance of an...