scholarly journals Recovering Preferences From Finite Data

Econometrica ◽  
2021 ◽  
Vol 89 (4) ◽  
pp. 1633-1664
Author(s):  
Christopher P. Chambers ◽  
Federico Echenique ◽  
Nicolas S. Lambert
Keyword(s):  
Expected Utility ◽  
Utility Theory ◽  
Sufficient Conditions ◽  
Revealed Preference ◽  
Expected Utility Theory ◽  
True Preference ◽  
Menu Choice ◽  
Wide Range ◽  
Sufficient Conditions For Convergence ◽  
Finite Choice

We study preferences estimated from finite choice experiments and provide sufficient conditions for convergence to a unique underlying “true” preference. Our conditions are weak and, therefore, valid in a wide range of economic environments. We develop applications to expected utility theory, choice over consumption bundles, and menu choice. Our framework unifies the revealed preference tradition with models that allow for errors.

An Expected Utility Theory of International Conflict

1980 ◽  
Vol 74 (4) ◽  
pp. 917-931 ◽  
Author(s):  
Bruce Bueno de Mesquita
Keyword(s):  
Expected Utility ◽  
Utility Theory ◽  
International Conflict ◽  
Sufficient Conditions ◽  
Expected Utility Theory ◽  
International Conflicts ◽  
Military Interventions ◽  
Obvious Generalization ◽  
Using Data

An expected utility theory of necessary, but not sufficient, conditions for the initiation and escalation of serious international conflicts, including war, is proposed. The theory leads to the seemingly obvious generalization that actors do not initiate wars—or serious disputes—if they do not expect to gain from doing so. Underlying that generalization are a number of counterintuitive deductions. For instance, I show that though a weak nonaligned state cannot rationally attack a stronger nonaligned nation, it might be able to attack a stronger adversary that, in addition to its own strength, expects to derive support from allies. I also show that serious conflict is more likely between very close allies than between enemies. Systematic tests, using data on serious international threats, military interventions, and interstate wars, as well as 17 cases of known attempts at deterrence, show very substantial support for the expected utility propositions deduced from the theory.

scholarly journals Cumulative Prospect Theory Version with Fuzzy Values of Outcome Estimates

Risks ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 72
Author(s):  
Oleg Uzhga-Rebrov ◽  
Peter Grabusts
Keyword(s):  
Prospect Theory ◽  
Expected Utility ◽  
Utility Theory ◽  
Expected Utility Theory ◽  
Cumulative Prospect Theory ◽  
Development History ◽  
Decisions Under Risk ◽  
History Of ◽  
Main Factors ◽  
Theoretical Foundations

Choosing solutions under risk and uncertainty requires the consideration of several factors. One of the main factors in choosing a solution is modeling the decision maker’s attitude to risk. The expected utility theory was the first approach that allowed to correctly model various nuances of the attitude to risk. Further research in this area has led to the emergence of even more effective approaches to solving this problem. Currently, the most developed theory of choice with respect to decisions under risk conditions is the cumulative prospect theory. This paper presents the development history of various extensions of the original expected utility theory, and the analysis of the main properties of the cumulative prospect theory. The main result of this work is a fuzzy version of the prospect theory, which allows handling fuzzy values of the decisions (prospects). The paper presents the theoretical foundations of the proposed version, an illustrative practical example, and conclusions based on the results obtained.

Norm-Endorsement Utilitarianism and the Nature of Utility

1996 ◽  
Vol 12 (2) ◽  
pp. 165-182 ◽  
Author(s):  
Jonathan Baron
Keyword(s):  
Expected Utility ◽  
Utility Theory ◽  
Expected Utility Theory ◽  
Interpersonal Comparison ◽  
Moral Norms ◽  
Moral Principles ◽  
Future Goals ◽  
Equal Consideration

In this article, I shall suggest an approach to the justification of normative moral principles which leads, I think, to utilitarianism. The approach is based on asking what moral norms we would each endorse if we had no prior moral commitments. I argue that we would endorse norms that lead to the satisfaction of all our nonmoral values or goals. The same approach leads to a view of utility as consisting of those goals that we would want satisfied. In the second half of the article, I examine the implication of this view for several issues about the nature of utility, such as the use of past and future goals. The argument for utilitarianism is not completed here. The rest of it requires a defense of expected-utility theory, of interpersonal comparison, and of equal consideration (see Baron, 1993; Broome, 1991).

Housing Market Search Behavior and Expected Utility Theory: 1. Measuring Preferences for Housing

1982 ◽  
Vol 14 (5) ◽  
pp. 681-698 ◽  
Author(s):  
T R Smith ◽  
W A V Clark
Keyword(s):  
Los Angeles ◽  
Housing Market ◽  
Expected Utility ◽  
Utility Theory ◽  
House Price ◽  
Expected Utility Theory ◽  
Utility Functions ◽  
Future Search ◽  
Space Construction ◽  
Market Search

This is the first of two papers examining housing market search in a Los Angeles market. In this paper, we derive and analyze utility functions for housing for each individual in two groups of subjects. The utility functions are derived from an experimental setting, in which house price, floor space, construction quality, and neighborhood quality are varied. The functions are found to be essentially compatible with a linear model. They are used to predict the ratings of real houses and the ratings of the expected value of future search. These ratings are compared with actual ratings obtained from subjects during search. The results suggest that the actual or predicted ratings may be employed in a direct test of a simple expected utility theory of search, and further research along these lines appears justified.

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