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 …

expected utility (GEU) to the diversification of agents who maximize the conventional expected utility (EU). Specifically, we … derive the patterns of diversification for agents who maximize a rank-dependent' expected utility, attaching more weight to … bad' than to good' outcomes, in contrast to the probability weights used in a conventional expected utility maximization …

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 …

Habit utility has been the focus of a large and growing body of literature in financial economics. This study …

utility.' In the inward-looking' economy, individuals care about how their consumption in the current period compares to their … case will lead to lower utility than in the inward-looking case …

expected utility models. Households' deductible choices imply a median relative risk aversion of 108. Households' coverage …. Assessing rank dependent utility models, we find that households follow two tenets of prospect theory: overestimation of small …