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A language for the construction of preferences under uncertainty

LiCalzi, Marco - EconWPA - 2005

This paper studies a target-based procedure to rank lotteries that is normatively and observationally equivalent to the expected utility model. In view of this equivalence, the traditional utility-based language for decision making may be substituted with an alternative target-based language....

Persistent link: https://www.econbiz.de/10005118565

The Pearson system of utility functions

LiCalzi, Marco; Sorato, Annamaria - EconWPA - 2003

This paper describes a parametric family of utility functions for decision analysis. The parameterization is obtained by embedding the HARA class in a four-parameter representation for the risk aversion function. The resulting utility functions have only four shapes: concave, convex, S-shaped,...

Persistent link: https://www.econbiz.de/10005118574

Slackers and Zealots: Civil Service, Policy Discretion, and Bureaucratic Capacity

Gailmard, Sean; Patty, John W. - EconWPA - 2005

in (relationship specific) policy expertise, and may be either policy-motivated or policy-indifferent. We show that under … specific conditions on the nature of expertise and bureaucratic discretion over policy choices, merit system protections for … job tenure encourage the development of expertise and problem solving capacity in the bureaucracy. In addition, we …

Persistent link: https://www.econbiz.de/10005076581

Counterfactuals in Wonderland

Samet, Dov - EconWPA - 1997

The literary source of the main ideas in Aumann's article ``Backward Induction and Common Knowledge of Rationality" is …

Persistent link: https://www.econbiz.de/10005550875

Rational Legal Decision-Making, Value Judgment and Efficient Precaution in Tort law

ZHENG, MINGLI; ANWAR, SAJID - EconWPA - 2005

By reinterpreting Savage axioms as axioms of the social rationality over resource allocations, we derive a social …

Persistent link: https://www.econbiz.de/10005561029

Would the CAPM Hold in a Risk-Indifferent World?

Alb, Silviu Iulian - EconWPA - 2004

The Relative Value Theory predicts equilibrium prices in a world in which time value of money is unique, and investors are risk-indifferent and only care about maximizing cumulative returns. This paper shows that RVT’s equilibrium prices determine intrinsic expected returns that satisfy the...

Persistent link: https://www.econbiz.de/10005134946

Framing as Path-Dependence

Gold, Natalie; List, Christian - EconWPA - 2002

elicited (violation of procedure invariance). In this paper we examine precisely which classical conditions of rationality it …

Persistent link: https://www.econbiz.de/10005135085

The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness

James, Harvey - EconWPA - 2002

This paper examines the concepts of trust and trustworthiness in the context of a one-sided variation of the prisoner's dilemma, and it evaluates four different categories of solutions to the PD problem: changing player preferences, enforcing explicit contracts, establishing implicit contracts,...

Persistent link: https://www.econbiz.de/10005135123

Behavioural versus Habitual Rationality and Backward Induction

Clausing, Thorsten - EconWPA - 1999

rationality conditions are formulated, which are called behavioural and habitual rationality. While common knowledge of the former …

Persistent link: https://www.econbiz.de/10005407565

Explaining the Beta, Size and Value Effects Under the Relative Value Theory

Alb, Silviu Iulian - EconWPA - 2004

The RVT predicts equilibrium prices in a world where investors ignore variance and only care about cumulative returns. Such prices determine intrinsic returns that satisfy the CAPM equation. This paper shows that assets that pay a constant (or constantly increasing) dividend but face each year...

Persistent link: https://www.econbiz.de/10005076993