A financial market model with general semimartingale asset-price processes and where agents can only trade using no-short-sale strategies is considered. We show that wealth processes using continuous trading can be approximated very closely by wealth processes using simple combinations of buy-and-hold trading. This approximation is based on controlling the proportions of wealth invested in the ...

Posner adopted the economic principle of wealth maximization as a guiding principle for the dispensation of justice. This resulted in his endorsing the Kaldor-Hicks principle (also known as the potential Paretian improvement principle) as a basis for just laws. This article explores whether this principle is an adequate basis for environmental law. As can be deduced from Fleming, the legal appr...

We consider the utility maximization problem for an investor who faces a solvency or risk constraint in addition to a budget constraint. The investor wishes to maximize her expected utility from terminal wealth subject to a bound on her expected solvency at maturity. We measure solvency using a solvency function applied to the terminal wealth. The motivation for our analysis is an optimal inves...

Creation and management of information (Knowledge Management, KM) is the key to Wealth Maximization for any business. Here, the real challenge is to understand how to accelerate the transformation of knowledge into money through identification of measurement of knowledge as assets. This study has identified a positive relation in the growth of Intellectual Capital (IC) with the improvements and...

Revealed preference theory offers a criterion for decision-making quality: if decisions are high quality then there exists a utility function that the choices maximize. We conduct a large-scale field experiment that enables us to test for consistency with utility maximization. We find that high-income and high-education subjects display greater levels of consistency than low-income and low-educ...

Subjects in a controlled laboratory experiment choose a withdraw policy from a cash flow evolving according to an arithmetic Brownian motion. Earnings are based on total withdraws but aggressive withdraw policies expose the subject to risk of ruin. The policy that maximizes expected earnings does not, in general, maximize the odds of survival. We find that in treatments in which wealth maximiza...

A crash rate theory based on corporate economic utility maximization is applied to individual behavior in U.S. and German motorway death rates, by using wealth inhomogeneity data in ten-percentile bins to account for variations of utility maximization in the population. Germany and the U.S. have similar median wealth figures, a well-known indicator of accident risk, but different motorway death...