The quasi-linear quadratic utility model is widely used in economics. The knowledge of its exact origin is less …

Bayesian updating is the dominant theory of learning. However, the theory is silent about how individuals react to …

deviation (in beliefs, utility, or perceived prices) is within e of expected utility theory. The number e can then be used as a …We propose a new measure of deviations from expected utility, given data on economic choices under risk and uncertainty … distance to the theory. We apply our methodology to three recent large-scale experiments. Many subjects in those experiments …

behavior of expected utility maximizers. Two types are characterized by high likelihood insensitivity; one of them is ambiguity …

We characterize intertemporal utility functions over heterogeneous goods that feature (i) a constant elasticity of … the goods. We find that a standard (stationary) intertemporal utility function is consistent with these two properties if … elasticities of substitution are identical, or if the instantaneous utility function is Cobb-Douglas. We also characterize the …