Stochastic Dynamic Utilities and Inter-Temporal Preferences
Probability
2020-02-24 v4 Economics
Abstract
We propose an axiomatic approach which economically underpins the representation of dynamic preferences in terms of a stochastic utility function, sensitive to the information available to the decision maker. Our construction is iterative and based on inter-temporal preference relations, whose characterization is inpired by the original intuition given by Debreu's State Dependent Utilities (1960).
Cite
@article{arxiv.1803.05244,
title = {Stochastic Dynamic Utilities and Inter-Temporal Preferences},
author = {Marco Maggis and Andrea Maran},
journal= {arXiv preprint arXiv:1803.05244},
year = {2020}
}