Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 Savage in the Market
نویسندگان
چکیده
We develop a behavioral axiomatic characterization of Subjective Expected Utility (SEU) under risk aversion. Given is an individual agent’s behavior in the market: assume a finite collection of asset purchases with corresponding prices. We show that such behavior satisfies a “revealed preference axiom” if and only if there exists a SEU model (a subjective probability over states and a concave utility function over money) that accounts for the given asset purchases. JEL classification numbers: D81, D11
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