This paper suggests a solution to the puzzling finding documented in Moskowitz and Vissing-Jorgensen (2002) that the return to an index of private equity is equal to the return to the CRSP index of public equity even though investment in private firms is substantially riskier. It presents an occupational choice model where human and financial capital can be jointly invested in a private busines...

We present a new model of liberal (also known as free-choice) multiple-choice tests in which a candidate’s test score is represented as a function of two other variables: their inclination to eliminate perceived distracters; and the accuracy with which they are able to do this. We propose a number of theoretical relationships between these three variables that appear to support the notion that ...

To a fuzzy choice function C we assign the indicators of revealed preference WAFRP (C), SAFRP (C) and the indicators of congruence WFCA(C), SFCA(C). These indicators measure the degree to which the fuzzy choice function C verifies the axioms of revealed preference WAFRP , SAFRP and of congruenceWFCA and SFCA, respectively.

In this paper we propose the opinion leader-follower through mediators systems — OLFM systems— a multiple-action collective choice model for societies. In those societies three kind of actors are considered: opinion leaders that can exert certain influence over the decision of other actors, followers that can be convinced to modify their original decisions, and independent actors that neither a...

A2 W of mouth (WOM) plays an increasingly important role in shaping consumers’ attitudes and buying behaviors. Prior work in marketing has mainly focused on the aggregate impact of WOM on product sales as well as the generation of WOM. Very little attention has been paid to the consumption or usage of WOM. In this paper, utilizing a unique data set that collects information from the automobile ...

Researchers using questionnaires to elicit preferences must decide whether to include response options that allow respondents to express ‘‘no opinion.’’ Using a split-sample design, we explore the implications of alternative answer formats including and not including no-opinion responses in an attribute-based choice experiment. The results indicate that using multiple no-opinion responses may e...

Multiple choice questions (MCQs) are the most common and computably tractable ways of assessing the knowledge of a student, but they restrain the students to express a precise answer that doesn’t really represent what they know, leaving no room for ambiguities or doubts. We propose Ev-MCQs (Evidential MCQs), an application of belief function theory for the management of the uncertainty and impr...

A common theme in the marketing literature is the acquisition and retention of customers as they trade-up from inexpensive, introductory offerings to those of higher quality. We extend the nonhomothetic choice model of Allenby and Rossi (1991) to accommodate effects of advertising, professional recommendation and other factors that facilitate the description and management of trade-up. Our mode...

Benefit cost analysis (BCA) is a widely used method of assessing environmental policies. One of the limitations of BCA is the incorporation of equity considerations into an analysis. While this is theoretically possible through the application of distributional weights, this practice has not been generally adopted due to difficulties in determining appropriate weights. This paper suggests that ...

We present a process algebra with conditional expressions of which the conditions concern the enabledness of actions in the context in which a process is placed. With those conditions, it becomes easy to model preferential choices. A preferential choice of a process is a choice whereby certain alternatives are excluded if at least one of the other alternatives is permitted by the context in whi...