We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
A revealed-preference implication of weighted utility decisions under uncertainty.
- Authors
Park, In-Uck
- Abstract
Summary. In a novel formulation of revealed preference analysis, Green and Osband [8] show that for expected-utility maximizers, acts partition the state-simplex into linear polyhedral blocks. The question naturally arises whether this characterization distinguishes expected utility theory from non-expected utility theories. This paper investigates the weighted utility theory of Chew [2] and shows that the corresponding partition is systematically different from the expected utility theory: the boundaries of the partition blocks are quadratic rather than linear. This result contains useful empirical contents.
- Subjects
UTILITY theory; ECONOMIC demand
- Publication
Economic Theory, 1998, Vol 11, Issue 2, p413
- ISSN
0938-2259
- Publication type
Article
- DOI
10.1007/s001990050194