methods

Geometrie der Gewebe : topologische Fragen der Differentialgeometrie

On the structure of special classes of uninorms

ber Parallelstrukturen: Teil I: Grundbegriffe

Convex combinations of nilpotent triangular norms

Subjective expected utility is the most widely used model to represent preferences under uncertainty (when objective probabilities of events may not be known). This paper presents a new behavioral characterization (preference axiomatization) of subjective expected utility. The latter is derived from a behavioral assumption of cardinal independence, also known as standard sequence invariance. This axiom requires that a standard sequence of outcomes (equally spaced in terms of utility) is independent of the conditional event. This axiom is a weaker version of the trade-off consistency condition of Wakker [Wakker PP (1984) Cardinal coordinate independence for expected utility. J. Math. Psych. 28:110–117]. The main representation theorem is derived both in the connected topology approach and the algebraic approach (when step-continuity is replaced with solvability and Archimedean axioms).

A Simple Behavioral Characterization of Subjective Expected Utility

Existing models of intertemporal choice such as discounted utility (also known as constant or exponential discounting), quasi-hyperbolic discounting and generalized hyperbolic discounting are not monotone: A decision maker with a concave utility function generally prefers receiving $1 m today plus $1 m tomorrow over receiving $2 m today. This paper proposes a new model of intertemporal choice. In this model, a decision maker cannot increase his/her satisfaction when a larger payoff is split into two smaller payoffs, one of which is slightly delayed in time. The model can rationalize several behavioral regularities such as a greater impatience for immediate outcomes. An application of the model to intertemporal consumption/saving reveals that consumers may exhibit dynamic inconsistency. Initially, they commit to saving for future consumption, but, as time passes, they prefer to renegotiate such a contract for an advance payment. Behavioral characterization (axiomatization) of the model is presented. The model allows for intertemporal wealth, complementarity and substitution effects (utility is not separable across time periods).

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Geometrie der Gewebe : topologische Fragen der Differentialgeometrie

Citations

On the structure of special classes of uninorms

ber Parallelstrukturen: Teil I: Grundbegriffe

Convex combinations of nilpotent triangular norms

A Simple Behavioral Characterization of Subjective Expected Utility

A monotone model of intertemporal choice

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