Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2015

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Stationary Cardinal Utility

Asen Kochov*

Date: 2015-05-09 5:00 pm – 5:30 pm
Last modified: 2015-05-04

Abstract


The paper provides a representation theorem for the class of all stationary preferences in a stochastic environment. A notion of ambiguity aversion applicable to such preferences is also proposed. The analysis helps discriminate between dynamic models of ambiguity aversion and expected utility models with endogenous discounting, which, as has been observed in both applied and decision-theoretic work, share a number of predictions concerning intertemporal behavior. 

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