Tekijä: | Dardanoni, V. |
Otsikko: | Optimal choices under uncertainty: the case of two argument utility functions |
Lehti: | Economic Journal
1988 : VOL. 98:391, p.429-450 |
Asiasana: | COMMODITIES MODELS CHOICE THEORY UNCERTAINTY BUDGET DECISION MAKING STOCHASTIC PROCESSES RISK |
Kieli: | eng |
Tiivistelmä: | The popularity of the two commodity model for investigation of policy relevant and theoretically interesting economic problems is verified. A unified treatment for the analysis of two argument utility functions with a random budget constraint is presented. Some policy and empirically relevant problems are analyzed using a model under uncertainty. Two well known examples of decision making under uncertainty are considered and comparisons with the unifying framework are made. The case of non-stochastic parameters is discussed. Predictions are derived for additive and multiplicative risks. The relationships between the different contributions are highlighted. |
SCIMA