A Note on the Risk Behavior and Death of Homo Economicus

Goetborg University Economics Working Paper No. 221

11 Pages Posted: 13 Sep 2006

See all articles by Olof Johansson-Stenman

Olof Johansson-Stenman

Goeteborg University - School of Economics & Commercial Law

Date Written: August 2006

Abstract

Recent papers by Cox and Sadiraj (2006) and Rubinstein (2006) have pointed out that expected utility theory is more general than has sometimes been acknowledged, and can hence not be refuted as easily by means of experiments. While acknowledging this fact, this note nevertheless demonstrates that typical risk experimental results appear impossible to reconcile with conventional consumption theory, where people are time consistent and integrate all sources of income perfectly.

Keywords: The Rabin Critique, expected utility of income, expected utility of final wealth

JEL Classification: D81, D91

Suggested Citation

Johansson-Stenman, Olof, A Note on the Risk Behavior and Death of Homo Economicus (August 2006). Goetborg University Economics Working Paper No. 221, Available at SSRN: https://ssrn.com/abstract=929496 or http://dx.doi.org/10.2139/ssrn.929496

Olof Johansson-Stenman (Contact Author)

Goeteborg University - School of Economics & Commercial Law ( email )

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