Seminario IECON "Approximate Expected Utility Rationalization"

Presenta Federico Echenique (Caltech)en coautoría con Taisuke Imai y Kota Saito

Actividad organizada en conjunto dECON-FCS e IECON-FCEA

Abstract 

"We propose a new measure of deviations from expected utility theory. For any positive number e, we give a characterization of the datasets with a rationalization that is within e (in beliefs, utility, or perceived prices) of expected utility theory. The number e can then be used as a measure of how far the data is to expected utility theory. We apply our methodology to three recent experiments. Many subjects in those experiments are consistent with utility maximization, but not with expected utility maximization. Our measure of distance to expected utility is correlated with subjects’ demographic characteristics".

Martes 06/08/2019

12 hs, Salón 3 del Piso 2 del Edificio de Investigación y Posgrados (EIP) 

Facultad de Ciencias Económicas y de Administración