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Utility, Rationality and Beyond – from Behavioral Finance to Informational Finance

By: Sukanto Bhattacharya

... HEXIS Phoenix 2005 2 This book can be ordered in a paper bound reprint from: Books on Demand ProQuest Informat... ... ISBN: 1-931233-85-3 Standard Address Number: 297-5092 Printed in the United States of America 3 Acknowledgements The author gr... ... from his supervisor Dr. Kuldeep Kumar, Associate Professor of Statistics in the School of Information Technology, Bond University. Dr. Kumar has i... ...worst loss (Lichtenstein et. al., 1978). There is reasonably well-established theory of classical utility maximization in the case of deduct... ...ivity analysis. The major part of the work attempts to build on existing, established theoretical models by incorporating additional mechanisms with... ...(c j )} log 2 p {r (c j )}], j = 1, 2 … 2 K … (4.10) Now, having established the essential premise of formulating an extrinsic utility meas... ...ratt measure of absolute risk aversion (ARA) is given as follows: (Arrow, 1971; Pratt and Zeckhauser, 1987) ... ...ome quite a popular investment vehicle with some of the larger commercial banks in Europe and also starting to make an entry of late into the Austra... ...rrow, K. J. Essays in the theory of risk-bearing. Chicago: Markha, U.S.A., 1971. Becker, G. S. Altruism, Egoism and Genetic Fitness: Economics and ...

...This work covers a substantial mosaic of related concepts in utility theory as applied to financial decision-making. It reviews some of the classical notions of Benthamite utility and the normative utility paradigm offered by the von Neumann-Morgenstern expected utility theory; expl...

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