Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility … robust violations of discounted expected utility, inconsistent with both prospect theory probability weighting and models …

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 …

durable goods. We show that consumers' utility and discount functions in a dynamic discrete choice model are jointly … identified using data generated by this specific design. In contrast, based on revealed preference data, the utility and discount …

operators and another that exploits the theory of monotone concave operators - we obtain conditions that are both necessary and …

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 quot;realization utility,quot; analyze its predictions, and show that it can shed light on …

Using implicit expected utility theory, a money metric of utility derived from playing a lottery game is developed …. Output of the lottery sector can be defined as the difference in utility with and without the game. Using a kinked parametric …

, survival ambiguity is welfare improving because it allows competitive insurance companies to pool risk across survival types …

Economic evaluation of climate policy traditionally treats uncertainty by appealing to expected utility theory. Yet our … circumstances it has been argued that the axioms of expected utility theory may not be the the correct standard of rationality. By …