A non-zero dispersion leads to the non-zero bias of mean
AbstractA theorem of existence of the non-zero restrictions for the mean of a function on a finite numerical segment at a non-zero dispersion of the function is proved. The theorem has an applied character. It is aimed to be used in the probability theory and statistics and further in economics. Its ultimate aim is to help to answer the Aczél-Luce question whether W(1)=1 and to explain, at least partially, the well-known problems and paradoxes of the utility theory, such as the underweighting of high and the overweighting of low probabilities, the Allais paradox, the four-fold pattern paradox, etc., by purely mathematical methods.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 47559.
Date of creation: 11 Jun 2013
Date of revision:
utility; utility theory; probability; uncertainty; decisions; economics; Prelec; probability weighting; Allais paradox; risk aversion;
Find related papers by JEL classification:
- C0 - Mathematical and Quantitative Methods - - General
- C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kenneth Chay & Patrick J. McEwan & Miguel Urquiola, 2003.
"The Central Role of Noise in Evaluating Interventions that Use Test Scores to Rank Schools,"
Discussion Papers, Columbia University, Department of Economics
0304-10, Columbia University, Department of Economics.
- Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2005. "The Central Role of Noise in Evaluating Interventions That Use Test Scores to Rank Schools," American Economic Review, American Economic Association, American Economic Association, vol. 95(4), pages 1237-1258, September.
- Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2003. "The Central Role of Noise in Evaluating Interventions that Use Test Scores to Rank Schools," NBER Working Papers 10118, National Bureau of Economic Research, Inc.
- Hey, John D & Orme, Chris, 1994. "Investigating Generalizations of Expected Utility Theory Using Experimental Data," Econometrica, Econometric Society, Econometric Society, vol. 62(6), pages 1291-1326, November.
- Daniel Kahneman & Richard H. Thaler, 2006. "Anomalies: Utility Maximization and Experienced Utility," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(1), pages 221-234, Winter.
- David J. Butler & Graham C. Loomes, 2007. "Imprecision as an Account of the Preference Reversal Phenomenon," American Economic Review, American Economic Association, American Economic Association, vol. 97(1), pages 277-297, March.
- Tversky, Amos & Wakker, Peter, 1995. "Risk Attitudes and Decision Weights," Econometrica, Econometric Society, Econometric Society, vol. 63(6), pages 1255-80, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.