We establish a convergence theorem that shows that discrete-time recursive utility, as developed by Kreps and Porteus … (1978), converges to stochastic di erential utility, as introduced by Du e and Epstein (1992), in the continuous-time limit …

We employ a stochastic dynamic programming approach to study decision making by an individual wishing to have an … demonstrate that our marrying individual uses a reservation utility to determine which marriage proposal to accept. Third, we … profit maximization implies that all matchmaking firms offer marriage proposals whose utility equals the reservation utility …

We employ a stochastic dynamic programming approach to study decision making by an individual wishing to have an … demonstrate that our marrying individual uses a reservation utility to determine which marriage proposal to accept. Third, we … profit maximization implies that all matchmaking firms offer marriage proposals whose utility equals the reservation utility …