THE USE OF UNBOUNDED UTILITY FUNCTIONS IN EXPECTED-UTILITY MAXIMIZATION: COMMENT.
The article presents information on the use of unbound utility functions in expected-utility maximization. The purpose of this article is to examine the practical limitations on the use of unbounded utility functions. The conclusion is reached that only under highly improbable conditions concerning...
| Publicado en: | Quarterly Journal of Economics Vol. 88; no. 1; pp. 133 - 136 |
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| Formato: | Artículo |
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Oxford University Press / USA
Feb74
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4624445&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4624445 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00335533 QJE jtl: Quarterly Journal of Economics issn: 00335533 maglogo: N pubinfo: dt: Feb74 vid: 88 iid: 1 pid: 622 pub: Oxford University Press / USA artinfo: ui: 4624445 10.2307/1881799 ppf: 133 ppct: 3 formats: tig: atl: THE USE OF UNBOUNDED UTILITY FUNCTIONS IN EXPECTED-UTILITY MAXIMIZATION: COMMENT. aug: au: Ryan, Terence M. affil: University of Dublin. Trinity College. su: Utility functions Maximum principles (Mathematics) Polynomials Economics Probability theory Mathematical functions Functional analysis sug: subj: Utility functions Maximum principles (Mathematics) Polynomials Economics Probability theory Mathematical functions Functional analysis ab: The article presents information on the use of unbound utility functions in expected-utility maximization. The purpose of this article is to examine the practical limitations on the use of unbounded utility functions. The conclusion is reached that only under highly improbable conditions concerning the probability density function of returns do unbounded utility functions fail to discriminate correctly between alternative actions. The aim of this note is to establish that the objections to the use of unbounded utility functions are not, in practice, very restrictive. For one important class of function, namely the polynomials, the author require no more than that the relevant finite moments exist, as, in the majority of cases, they do. Even in the more general case, the conditions necessary to permit the use of unbounded utility functions will generally be met in practice, and this consideration allows one a greater choice of functional form in empirical work in this field. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1974 holdings: @attributes: islocal: N |
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