Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/52680 
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dc.contributor.authorHe, Yuqingen
dc.date.accessioned2011-11-29-
dc.date.accessioned2011-12-09T12:29:06Z-
dc.date.available2011-12-09T12:29:06Z-
dc.date.issued2011-
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
dc.language.isoengen
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen
dc.relation.ispartofseries|aEconomics Discussion Papers |x2011-50en
dc.subject.jelA12en
dc.subject.jelD01en
dc.subject.ddc330en
dc.subject.keywordPsychophysicsen
dc.subject.keywordultimatum gameen
dc.subject.keywordutility functionen
dc.subject.keywordlogarithmic lawen
dc.subject.keywordpower lawen
dc.titlePsychophysical interpretation for utility measures-
dc.typeWorking Paperen
dc.identifier.ppn675431093en
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.enen
dc.identifier.repecRePEc:zbw:ifwedp:201150en

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