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 ...

One of the stylized facts underlying prospect theory is a fourfold pattern of risk preferences. People have been shown to be risk seeking for small probability gains and large probability losses, ...

Historically, risk measures have been used for single-period investments, and this has prevented their application by investors willing to reinvest their wealth for more than one period. Due to its ...

Learn how utility functions derive demand functions and their role in maximizing consumer satisfaction and economic decision making.

Andriy Blokhin has 5+ years of professional experience in public accounting, personal investing, and as a senior auditor with Ernst & Young. Erika Rasure is globally-recognized as a leading consumer ...