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Persistent link: https://www.econbiz.de/10001916170
We extend the analysis of the intertemporal utility maximization problem for Hindy-Huang-Kreps utilities reported in Bank and Riedel (1998) to the stochastic case. Existence and uniqueness of optimal consumption plans are established under arbitrary convex portfolio constraints, including both...
Persistent link: https://www.econbiz.de/10009581101
We prove existence of an Arrow-Debreu equilibrium when agents' preferences exhibit local substitution in the sense of Hindy, Huang, and Kreps (1992). Efficient allocations and supporting price functionals are identified and characterized. Under Hindy Huang Kreps preferences, equilibrium price...
Persistent link: https://www.econbiz.de/10009612019
In this paper I consider a complex decision problem where subjects have to cope with a time horizon of uncertain … economic theory suggests to solve the decision problem. But since real decision makers can hardly be expected to behave …
Persistent link: https://www.econbiz.de/10009581111
This article investigates whether decision makers intuitively optimize close to the normative prediction in … entrepreneurial decision situations where their time must be allocated between a wage job and a newly formed venture. We offer an … with systematic deviations that are consistent with well-known decision anomalies. Risk propensity is found to have an …
Persistent link: https://www.econbiz.de/10009621420
We consider an investor maximizing his expected utility from terminal wealth with portfolio decisions based on the available information flow. This investor faces the opportunity to acquire some additional initial information G.. The subjective fair value of this information for the investor is...
Persistent link: https://www.econbiz.de/10009583881
presented here the 'information technology' of individual decision makers as well as their preferences evolve in a dynamic … influences rational decision making. An indirect evolutionary analysis of an elementary yet important basic game of trust shows …
Persistent link: https://www.econbiz.de/10009578580
interval. In a decision-theoretic framework we study finite sample properties of a class of nonlinear' estimators. These … mean ; soft thresholding ; minimax regret decision theory ; non linear estirnation ; nonparametric regression ; orthogonal …
Persistent link: https://www.econbiz.de/10009627280
whether the willingness to invest can help to explain saving behavior, i.e. experimentally observed intertemporal decision …
Persistent link: https://www.econbiz.de/10009582396
Many consumption prices are highly volatile. It would certainly overburden our cognitive system to fully adjust to all these changes. Households therefore often rely on simple heuristics when deciding what to consume, e.g. in the form of a constant budget share for a specific consumption...
Persistent link: https://www.econbiz.de/10009612561