A number of authors have suggested that investors derive utility from realizing gains and losses on assets that they … own. We present a model of this "realization utility," analyze its predictions, and show that it can shed light on a …

relationship between how happy a person feels and utility is an unresolved question. Existing work in Economics either ignores … happiness data or assumes that felt happiness is more or less the same thing as flow utility. The approach we propose in this … "happiness is a sufficient statistic for utility." …

Welfare Economics. A key theme of Cognitive Economics is finite cognition (often misleadingly called "bounded rationality …

role in consumer choice as do a competitive firm's costs of production in its supply decision. This analogy extends to … reward level and task complexity. Estimated attention costs are highly correlated with decision time, an important common …

We show how to recover the money-metric utility function, which converts income at one point in time into equivalent …-metric utility for every matched income level. We apply our method to household consumption survey data from the United Kingdom from …

feature parallel demand curves. Specifically, we show that in random utility models, inverse aggregate demand curves shift in … parallel with respect to variety if and only if the random utility shocks follow the Gumbel distribution. Using results from …

We consider identification of nonparametric random utility models of multinomial choice using "micro data," i … variables assumptions, we show identifiability of the random utility model. We demonstrate robustness of these results to …

. Separability conditions facilitate identification of consumer marginal utility and firm marginal product functions. We also …