Experimental test of utility maximization
AbstractThe study tests the cardinal utility maximization hypothesis by an experimental procedure in a framework of utility scaling approach following the psychophysical-econometric paradigm, conceived in He (Psychophysical Interpretation for Utility Measures, 2011). It reveals (i) the utility maximization can be tested and has been supported by experimental results; (ii) the utility scaling approach following the psychophysical econometric paradigm offers a new foundation to discuss the utility concept; and (iii) it is necessary to distinguish the perception utility and emotion utility to respectively describe economic choices and enjoyment choices. --
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2012-32.
Date of creation: 2012
Date of revision:
utility maximization; experiment; Klein-Rubin utility function; perception utility; emotion utility;
Find related papers by JEL classification:
- A10 - General Economics and Teaching - - General Economics - - - General
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-29 (All new papers)
- NEP-EXP-2012-07-29 (Experimental Economics)
- NEP-NEU-2012-07-29 (Neuroeconomics)
- NEP-UPT-2012-07-29 (Utility Models & Prospect Theory)
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