2012-07-29 papers

on Neuroeconomics

Issue of 2012‒07‒29
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Experimental test of utility maximization By He, Yuqing

Experimental test of utility maximization

By:	He, Yuqing
Abstract:	The study tests the cardinal utility maximization hypothesis by an experimental procedure in a framework of utility scaling approach following the psychophysical-econometric paradigm, conceived in He (Psychophysical Interpretation for Utility Measures, 2011). It reveals (i) the utility maximization can be tested and has been supported by experimental results; (ii) the utility scaling approach following the psychophysical econometric paradigm offers a new foundation to discuss the utility concept; and (iii) it is necessary to distinguish the perception utility and emotion utility to respectively describe economic choices and enjoyment choices. --
Keywords:	utility maximization,experiment,Klein-Rubin utility function,perception utility,emotion utility
JEL:	A10 D01
Date:	2012
URL:	http://d.repec.org/n?u=RePEc:zbw:ifwedp:201232&r=neu

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