TITLE

A revealed-preference implication of weighted utility decisions under uncertainty

AUTHOR(S)
Park, In-Uck
PUB. DATE
February 1998
SOURCE
Economic Theory;1998, Vol. 11 Issue 2, p413
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Summary. In a novel formulation of revealed preference analysis, Green and Osband [8] show that for expected-utility maximizers, acts partition the state-simplex into linear polyhedral blocks. The question naturally arises whether this characterization distinguishes expected utility theory from non-expected utility theories. This paper investigates the weighted utility theory of Chew [2] and shows that the corresponding partition is systematically different from the expected utility theory: the boundaries of the partition blocks are quadratic rather than linear. This result contains useful empirical contents.
ACCESSION #
4693487

 

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