Cobb-Douglas preferences under uncertainty

This paper axiomatizes Cobb-Douglas preferences under uncertainty. First, we extend the original Trockel (Econ Lett 30:7–10, 1989)’s axiomatic foundation to a general state space framework based on the Strong Homotheticity Axiom, obtaining also the incomplete case a la Bewley (Decis Econ Financ 25:7...

Descripción completa

Detalles Bibliográficos
Autor: JOSÉ HELENO FARO
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:Brasil
Institución:Instituição de Ensino Superior e de Pesquisa (INSPER)
Repositorio:Repositório Institucional da INSPER
Idioma:inglés
OAI Identifier:oai:repositorio.insper.edu.br:11224/3975
Acceso en línea:https://repositorio.insper.edu.br/handle/11224/3975
Access Level:acceso abierto
Palabra clave:Cobb-Douglas preferences
Expected utility
Ellsberg paradox
Knightian uncertainty
Incomplete preferences
MEU preferences
id BR_e47dec105c34a8a0925fdb00a2e594f3
oai_identifier_str oai:repositorio.insper.edu.br:11224/3975
network_acronym_str BR
network_name_str Brasil
repository_id_str
spelling Cobb-Douglas preferences under uncertaintyCobb-Douglas preferencesExpected utilityEllsberg paradoxKnightian uncertaintyIncomplete preferencesMEU preferencesThis paper axiomatizes Cobb-Douglas preferences under uncertainty. First, we extend the original Trockel (Econ Lett 30:7–10, 1989)’s axiomatic foundation to a general state space framework based on the Strong Homotheticity Axiom, obtaining also the incomplete case a la Bewley (Decis Econ Financ 25:79–110, 2002). We show that this key axiom for the Cobb-Douglas expected utility specification is refuted by Ellsberg’s uncertainty aversion behavioral pattern. Our main result provides a set of meaningful axioms characterizing Cobb-Douglas min-expected utility preferences, an important class of uncertainty averse preferences for studying the consequences of ambiguity in finance and other fields. Finally, we present briefly how to obtain more general representations like the variational case.Springer2022-08-13T13:19:17Z2022-08-13T13:19:17Z2013info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlep. 273-285Digitalapplication/pdfapplication/pdf14320479https://repositorio.insper.edu.br/handle/11224/397510.1007/s00199-012-0738-754Economic TheoryNão InformadoNão informadoO INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITORinfo:eu-repo/semantics/openAccessengreponame:Repositório Institucional da INSPERinstname:Instituição de Ensino Superior e de Pesquisa (INSPER)instacron:INSPERJOSÉ HELENO FARO2025-08-26T18:23:20Zoai:repositorio.insper.edu.br:11224/3975Biblioteca Digital de Teses e Dissertaçõeshttps://www.insper.edu.br/biblioteca-telles/PRIhttps://repositorio.insper.edu.br/oai/requestbiblioteca@insper.edu.br || conteudobiblioteca@insper.edu.bropendoar:2025-08-26T18:23:20Repositório Institucional da INSPER - Instituição de Ensino Superior e de Pesquisa (INSPER)false
dc.title.none.fl_str_mv Cobb-Douglas preferences under uncertainty
title Cobb-Douglas preferences under uncertainty
spellingShingle Cobb-Douglas preferences under uncertainty
JOSÉ HELENO FARO
Cobb-Douglas preferences
Expected utility
Ellsberg paradox
Knightian uncertainty
Incomplete preferences
MEU preferences
title_short Cobb-Douglas preferences under uncertainty
title_full Cobb-Douglas preferences under uncertainty
title_fullStr Cobb-Douglas preferences under uncertainty
title_full_unstemmed Cobb-Douglas preferences under uncertainty
title_sort Cobb-Douglas preferences under uncertainty
dc.creator.none.fl_str_mv JOSÉ HELENO FARO
author JOSÉ HELENO FARO
author_facet JOSÉ HELENO FARO
author_role author
dc.subject.por.fl_str_mv Cobb-Douglas preferences
Expected utility
Ellsberg paradox
Knightian uncertainty
Incomplete preferences
MEU preferences
topic Cobb-Douglas preferences
Expected utility
Ellsberg paradox
Knightian uncertainty
Incomplete preferences
MEU preferences
description This paper axiomatizes Cobb-Douglas preferences under uncertainty. First, we extend the original Trockel (Econ Lett 30:7–10, 1989)’s axiomatic foundation to a general state space framework based on the Strong Homotheticity Axiom, obtaining also the incomplete case a la Bewley (Decis Econ Financ 25:79–110, 2002). We show that this key axiom for the Cobb-Douglas expected utility specification is refuted by Ellsberg’s uncertainty aversion behavioral pattern. Our main result provides a set of meaningful axioms characterizing Cobb-Douglas min-expected utility preferences, an important class of uncertainty averse preferences for studying the consequences of ambiguity in finance and other fields. Finally, we present briefly how to obtain more general representations like the variational case.
publishDate 2013
dc.date.none.fl_str_mv 2013
2022-08-13T13:19:17Z
2022-08-13T13:19:17Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv 14320479
https://repositorio.insper.edu.br/handle/11224/3975
10.1007/s00199-012-0738-7
54
identifier_str_mv 14320479
10.1007/s00199-012-0738-7
54
url https://repositorio.insper.edu.br/handle/11224/3975
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Economic Theory
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv p. 273-285
Digital
application/pdf
application/pdf
dc.coverage.none.fl_str_mv Não Informado
Não informado
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:Repositório Institucional da INSPER
instname:Instituição de Ensino Superior e de Pesquisa (INSPER)
instacron:INSPER
instname_str Instituição de Ensino Superior e de Pesquisa (INSPER)
instacron_str INSPER
institution INSPER
reponame_str Repositório Institucional da INSPER
collection Repositório Institucional da INSPER
repository.name.fl_str_mv Repositório Institucional da INSPER - Instituição de Ensino Superior e de Pesquisa (INSPER)
repository.mail.fl_str_mv biblioteca@insper.edu.br || conteudobiblioteca@insper.edu.br
_version_ 1853673681245437952
score 15,811543

Similares en LA Referencia