Arbeitspapier
Stronger Utility
Empirical research often requires a method how to convert a deterministic economic theory into an econometric model. A popular method is to add a random error term on the utility scale. This method, however, violates stochastic dominance. A modification of this method is proposed to avoid violations of dominance. The modified model compares favorably to other existing models in terms of goodness of fit to experimental data. The modified model can rationalize the preference reversal phenomenon. An intuitive axiomatic characterization of the modified model is provided. Important microeconomic concept of risk aversion is well-defined in the modified model.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers in Economics and Statistics ; No. 2011-16
- Klassifikation
-
Wirtschaft
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Criteria for Decision-Making under Risk and Uncertainty
- Thema
-
Decision Theory
Probabilistic Choice
Stochastic Dominance
Strong Utility
Risk Aversion
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Blavatskyy, Pavlo R.
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
- (wo)
-
Innsbruck
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Blavatskyy, Pavlo R.
- University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
Entstanden
- 2011
Ähnliche Objekte (12)
Firmer foundations for a stronger European Banking Union
A parallel currency proposal for the stronger Euro-states
Stronger together: Group incentives and the demand for prevention
Weighted Temporal Utility
Smart schools, smart growth: Investing in education facilities and stronger communities
The response of asset prices to monetary policy shocks: stronger than thought
Stronger evidence of long-run neutrality: A comment on Bernanke and Mihov
Stochastic differential utility as the continuous-time limit of recursive utility
Testing choquet expected utility
Outer measure and utility
Approximate Expected Utility Rationalization
Approximate Expected Utility Rationalization
Firmer foundations for a stronger European Banking Union
A parallel currency proposal for the stronger Euro-states
Stronger together: Group incentives and the demand for prevention
Weighted Temporal Utility
Smart schools, smart growth: Investing in education facilities and stronger communities
The response of asset prices to monetary policy shocks: stronger than thought
Stronger evidence of long-run neutrality: A comment on Bernanke and Mihov
Stochastic differential utility as the continuous-time limit of recursive utility
Testing choquet expected utility
Outer measure and utility
Approximate Expected Utility Rationalization
Approximate Expected Utility Rationalization
Firmer foundations for a stronger European Banking Union
A parallel currency proposal for the stronger Euro-states
Stronger together: Group incentives and the demand for prevention
Weighted Temporal Utility
Smart schools, smart growth: Investing in education facilities and stronger communities
The response of asset prices to monetary policy shocks: stronger than thought
Stronger evidence of long-run neutrality: A comment on Bernanke and Mihov
Stochastic differential utility as the continuous-time limit of recursive utility
Testing choquet expected utility
Outer measure and utility
Approximate Expected Utility Rationalization