Testing the expected utility maximization hypothesis with limited experimental data

In this article we use some old ideas of Franklin to derive the partial differential equation (St Robert Equation) characterizing the level curves of expected utility maximizing preferences over simple gambles. We also provide conditions under which an incomplete family of level curves permits an in...

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Bibliographic Details
Published inJapan and the world economy Vol. 16; no. 3; pp. 391 - 407
Main Authors Cooper, James B., Russell, Thomas, Samuelson, Paul A.
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.08.2004
Elsevier
SeriesJapan and the World Economy
Subjects
Business cycles
Economic conservation laws
Economic theory
Energy conservation
Expected utility
Globalization
International relations
Limited experimental data
Recovering preferences
Utility theory
Recovering preferences
Expected utility
Limited experimental data
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Summary:In this article we use some old ideas of Franklin to derive the partial differential equation (St Robert Equation) characterizing the level curves of expected utility maximizing preferences over simple gambles. We also provide conditions under which an incomplete family of level curves permits an investigator to determine whether or not the subject maximizes expected utility and if so under what conditions preferences can be recovered uniquely.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0922-1425
1879-2006
DOI:10.1016/j.japwor.2003.12.005