Data Dispersion in Economics(II)--- Inevitability and Consequences of Restrictions
This article reviews and improves the theorems of the existence of restrictions near the boundaries of finite numerical segments and of the probability scale in the presence of non-zero dispersion. The non-zero dispersion may be caused, for example, by the influence of observation noises. Applications of the theorems to experiments, which are typical of the utility theory, are briefly presented. Similar experiments may be associated with the old problems of utility theory, such as the underweighting of high and the overweighting of low probabilities, risk aversion, loss aversion, the Allais paradox, the equity premium puzzle, the "four-fold pattern" paradox, etc. It is shown that the restrictions as the consequences of the theorems should be taken into account in the explanation of such experiments. The restrictions may facilitate such explanations including explanations by utility models.
Volume (Year): 2 (2012)
Issue (Month): (November)
|Contact details of provider:|| Postal: |
Web page: http://www.bapress.ca
|Order Information:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
When requesting a correction, please mention this item's handle: RePEc:bap:journl:120403. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.