Abstract
Chung, Glimcher, and Tymula (2019) observed both consumers’ choices over commodity bundles and choices under risk. They assumed a cardinal riskless utility function V representing consumer choices and a cardinal risky utility function U. The two were inconsistent. This note shows that the two functions can be reconciled if we assume that V is ordinal. Then one utility function U can accommodate both risky and riskless choices
| Original language | English |
|---|---|
| Pages (from-to) | 561-565 |
| Number of pages | 5 |
| Journal | American Economic Journal: Microeconomics |
| Volume | 14 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - May 2022 |
Bibliographical note
JEL Classification:C91 Design of Experiments: Laboratory, Individual
D12 Consumer Economics: Empirical Analysis
D81 Criteria for Decision-Making under Risk and Uncertainty
Publisher Copyright: © 2022, American Economic Journal: Microeconomics.All Rights Reserved.
Fingerprint
Dive into the research topics of 'Transforming Ordinal Riskless Utility into Cardinal Risky Utility: A Comment on Chung, Glimcher, and Tymula (2019)'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver