When Utility Jumps: The Value of Having Cash in the Hand

dc.contributor.authorRotthoff, Kurt W.
dc.contributor.authorCoffey, Bentley
dc.date.accessioned2018-07-10T12:24:16Z
dc.date.available2018-07-10T12:24:16Z
dc.date.issued2018-02
dc.description.abstractDifferent theoretical explanations have been developed for seemingly inconsistent actions that deal with varying levels of risk and time. We propose a simple model of utility that unifies these seemingly separate phenomena, while not departing too far from the standard models of utility maximization already in use. Our driving assumption is that preferences over riskier outcomes discontinuously depart from preferences under certainty; a jump from no risk to some risk is fundamentally different from a movement of some risk to more risk.en_US
dc.identifier.citationTheoretical Economics Letters, 2018, 8, 72-78en_US
dc.identifier.issn2162-2086
dc.identifier.urihttps://doi.org/10.4236/tel.2018.81004
dc.identifier.urihttp://hdl.handle.net/123456789/1768
dc.language.isoenen_US
dc.publisherScientific Researchen_US
dc.subjectBinary Jumpsen_US
dc.subjectUtility Theoryen_US
dc.subjectRisken_US
dc.titleWhen Utility Jumps: The Value of Having Cash in the Handen_US
dc.typeArticleen_US
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