In cases where the utility function is increasing with upper and lower bounds then the utility function can be characterized by a distribution function, and we can take advantage of the various ...

Hyperbolic Absolute Risk Aversion (HARA) describes a family of utility functions where individuals' tolerance for risk is proportional to their wealth level. HARA utility functions provide a ...

4. The utility function V (x 1, x 2) = 5 [U (x 1, x 2)]/2+7 represents the same preference ordering as the utility function U (x 1, x 2). 5. A diminishing marginal rate of substitution implies that an ...

Moreover, it may be difficult to determine exactly what those stakes are (and perhaps to obtain accurate information about the expert's utility function). This creates somewhat of a dilemma for ...