Substantive income effects are incorporated in a logit or nested-logit model by assuming that utility is a piece-wise linear spline function of residual income. Specific income data are not required, only income by category. Expected compensating variation is easily and accurately approximated by the difference between expected maximum utility in the proposed and initial state, multiplied by th...

This paper discusses a novel approach to elicit people’s preferences for public goods, namely the life satisfaction approach. Reported subjective well-being data are used to directly evaluate utility consequences of public goods. The strengths of this approach are compared to traditional approaches and identification issues are addressed. Moreover, it is applied to estimate utility losses cause...

Demand for product characteristics is examined within the context of models that allow for both corner and interior solutions corresponding to zero and non-zero demand. Product attribute information is associated with marginal utility and curvature (satiation) parameters of various utility functions. Empirical applications demonstrate the need for incorporating characteristics in a fairly gener...

To date, researches on agent multi-issue negotiation are mostly based on linear utility functions. However, the relationship between utilities and resources is usually saturated nonlinear. To this end, we expand linear utility functions to nonlinear cases according to the law of diminishing marginal utility. Furthermore, we propose a negotiation model on multiple divisible resources with two ph...

This paper discusses a novel approach to elicit people’s preferences for public goods, namely the life satisfaction approach. Reported subjective well-being data are used to directly evaluate utility consequences of public goods. The strengths of this approach are compared to traditional approaches and identification issues are addressed. Moreover, it is applied to estimate utility losses cause...

This paper discusses a novel approach to elicit people’s preferences for public goods, namely the life satisfaction approach. Reported subjective well-being data are used to directly evaluate utility consequences of public goods. The strengths of this approach are compared to traditional approaches and identification issues are addressed. Moreover, it is applied to panel data to estimate utilit...

DEX is a qualitative multi-criteria decision analysis (MCDA) method, aimed at supporting decision makers in evaluating and choosing decision alternatives. We present results of a preliminary study in which we experimentally assessed the performance of two wellknown MCDA methods UTA and ACUTA to approximate qualitative DEX utility functions with piecewise-linear marginal utility functions. This ...

We perform a stability analysis for the utility maximization problem in a general semimartingale model where both liquid and illiquid assets (random endowments) are present. Small misspecifications of preferences (asmodeled via expected utility), as well as views of the world or the market model (as modeled via subjective probabilities) are considered. Simple sufficient conditions are given for...

Intertemporal choice experiments are increasingly implemented to make inference about discounting and marginal utility, yet little is known the predictive power of resulting measures. This project links standard experimental choices a consumption smoothing decision with large stakes — around 10% annual income. In sample 400 Guatemalan Conditional Cash Transfer recipients, we find that preferenc...

FOREWORD The bylaws of The National Regulatory Research Instit~te state that among the purposes of the Institute is: • • • to carry out research and related activities directed to the needs of state-regulatory commissioners, to assist the state commissions with developing innovative solutions to state regulatory problems, and to address regulatory issues of national concern. This report-the fif...