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dc.contributor.authorHe, Yuqingen_US
dc.date.accessioned2011-11-29en_US
dc.date.accessioned2011-12-09T12:29:06Z-
dc.date.available2011-12-09T12:29:06Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/52680-
dc.description.abstractThe paper explores utility measures by combining experiments with mathematical derivations in psychophysics paradigm. The analysis on ultimatum game experiment reveals an evidence for utility threshold and thus supports Bernoulli's utility logarithmic law. Both experimental results and theoretical derivations show that the logarithmic law is suitable for the description of commodity choice and the power law for risk choice. The further mathematical demonstration indicates the logarithmic law for utility scaling to be a Klein-Rubin utility function, a utility function well defined in microeconomics. Based on this, the experimental utility measure is connected with the econometric model Linear Expenditure System, and presents an experimental procedure for testing the utility maximization hypothesis, which will remove a long unsettled perplexity in a fundamental stone of economics since Gossen proposed it in 1854.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesEconomics Discussion Papers 2011-50en_US
dc.subject.jelA12en_US
dc.subject.jelD01en_US
dc.subject.ddc330en_US
dc.subject.keywordPsychophysicsen_US
dc.subject.keywordultimatum gameen_US
dc.subject.keywordutility functionen_US
dc.subject.keywordlogarithmic lawen_US
dc.subject.keywordpower lawen_US
dc.titlePsychophysical interpretation for utility measuresen_US
dc.typeWorking Paperen_US
dc.identifier.ppn675431093en_US
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.enen_US
dc.identifier.repecRePEc:zbw:ifwedp:201150-
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Discussion Papers

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