Risky Curves: On the Empirical Failure of Expected Utility
ISBN: 1138096466
EAN13: 9781138096462
Language: English
Publication Date: May 27, 2017
Pages: 152
Weight: 1.11 lbs.
Format: Paperback
Publisher:

Risky Curves: On the Empirical Failure of Expected Utility

Select Format Format: Paperback Select Conditions Condition: New

Selected

Format: Paperback

Condition: New

$68.07
Quantity
50 Available

Select Conditions
  • New $68.07 Risky Curves: On the Empirical Failure of Expected Utility
Book Overview

This Description may be from another edition of this product.

For several decades, the orthodox economics approach to understanding choice under risk has been to assume that each individual person maximizes some sort of personal utility function defined over purchasing power. This new volume contests that even the best wisdom from the orthodox theory has not yet been able to do better than supposedly na ve models that use rules of thumb, or that focus on the consumption possibilities and economic constraints facing the individual.

The authors assert this by first revisiting the origins of orthodox theory. They then recount decades of failed attempts to obtain meaningful empirical validation or calibration of the theory. Estimated shapes and parameters of the curves have varied erratically from domain to domain (e.g., individual choice versus aggregate behavior), from context to context, from one elicitation mechanism to another, and even from the same individual at different time periods, sometimes just minutes apart.

This book proposes the return to a simpler sort of scientific theory of risky choice, one that focuses not upon unobservable curves but rather upon the potentially observable opportunities and constraints facing decision makers. It argues that such an opportunities-based model offers superior possibilities for scientific advancement. At the very least, linear utility - in the presence of constraints - is a useful bar for the curved alternatives to clear.

Frequently Asked Questions About Risky Curves: On the Empirical Failure of Expected Utility

Book Reviews (0)

0
  |   0  reviews
Did you read Risky Curves: On the Empirical Failure of Expected Utility? Please provide your feedback and rating to help other readers.
Write Review
Captcha

No customer reviews for the moment.