Intransitivity of indifference, strong monotonicity, and the endowment effect

Article Abstract:

A 'sensation of preference' function is integrated into a model characterized by an agent with imperfect access to true preferences. The model is similar to a mathematical representation of stochastic preferences and indicated intransitivity of indifference and strong monotonicity. The agent's trading behavior followed patterns of the endowment effect over different choice problems.

Consumer behavior

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Bayes without Bernoulli: simple conditions for probabilistically sophisticated choice

Article Abstract:

Subjective probability in the purchase decisionmaking of consumers can be compatible with the existence of risk choices which are not necessarily linked to utility preference risks. Bayesian rationality is applied to hybrid subjective/objective uncertainty situations, such as roulette lotteries. The role of beliefs is a component in modeling subjective choice.

Usage, Uncertainty, Utility theory, Utility functions

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