Dynamic Consistency Implies Approximately Expected Utility Preferences
نویسندگان
چکیده
منابع مشابه
Existence and Dynamic Consistency of Nash Equilibrium with Non-expected Utility Preferences*
Sufficient conditions for the existence of a Nash equilibrium are given when preferences may violate the reduction of compound lotteries assumption (RCLA). Without RCLA decision makers may not be indifferent between compound lotteries which have the same probabilities of final outcomes. Therefore the conditions depend on how players perceive the game-whether they view themselves as moving first...
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Classical derivations of mean variance preferences have all relied upon the expected utility hypothesis. Some widespread experimental studies have uncovered that the expected utility model tends to be systematically violated in practice. Such findings would lead people to doubt the empirical relevance of the literature and the practical effectiveness of the portfolio selection which employ the ...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 1994
ISSN: 0022-0531
DOI: 10.1006/jeth.1994.1038