Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75929
Authors: 
Sinn, Hans-Werner
Year of Publication: 
2002
Series/Report no.: 
CESifo Working Paper 770
Abstract: 
The paper offers a proof that expected utility maximisation with logarithmic utility is a dominant preference in the biological selection process in the sense that a population following any other preference for decision-making under risk will, with a probability that approaches certainty, disappear relative to the population following this preference as time goes to infinity. The result is contrasted with Weber's and Fechner's Psychophysical Law which implies logarithmic sensation functions for objective physical stimuli.
Subjects: 
evolution
selection
risk preferences
Document Type: 
Working Paper

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