IDEAS home Printed from https://ideas.repec.org/p/aap/wpaper/150.html
   My bibliography  Save this paper

Cobb-Douglas Preferences under Uncertainty

Author

Listed:
  • José Heleno Faro

Abstract

This paper axiomatizes Cobb-Douglas preferences under uncertainty. First, we extend the original Trockel (1989)'s axiomatic foundation to a general state space framework based on the Strong Homotheticity Axiom, obtaining also the incomplete case a la Bewley (2002). We show that this key axiom for the Cobb Douglas expected utility speci cation is refuted by Ellsberg's uncertainty aver sion behavioral pattern. Our main result provides a set of meaningful axioms characterizing Cobb-Douglas Min-Expected Utility preferences, an important class of uncertainty averse preferences for studying the consequences of am biguity in nance and other elds. Finally, we present brie y how to obtain more general representations like the variational case.

Suggested Citation

Handle: RePEc:aap:wpaper:150
as

Download full text from publisher

File URL: https://repositorio.insper.edu.br/server/api/core/bitstreams/8d901215-b437-439f-96d8-282df71533ae/content?authentication-token=eyJhbGciOiJIUzI1NiJ9.eyJlaWQiOiIwNmRmYmM2MS1iNGQ1LTQ1YzgtYjlmNS1lYTk1ZDQwYTIwNzkiLCJzZyI6W10sImF1dGhlbnRpY2F0aW9uTWV0aG9kIjoicGFzc3dvcmQiLCJleHAiOjE3NDA1MDMxODJ9.GH5W3zHA8HGBqGRqsvB2o5M3aZPd-bRlqaPLcUAR0Ns
Download Restriction: no
---><---

More about this item

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aap:wpaper:150. See general information about how to correct material in RePEc.

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.

We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca Telles (email available below). General contact details of provider: https://edirc.repec.org/data/inspebr.html .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.