Coleção de Artigos Acadêmicos

URI permanente para esta coleçãohttps://repositorio.insper.edu.br/handle/11224/3227

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    Artigo Científico
    Independence and variational bewley preferences: a note
    (2020) Bastianello, Lorenzo; JOSÉ HELENO FARO; Teles, Flávia
    This note studies some alternatives and weak versions of the Independence axiom in a decision theoretic framework under uncertainty. We propose a characterization of this axiom using a property called Weight Independence. Moreover we study how the Independence axiom is related with the Variational Bewley model of Faro [2015]. We show that Variational Bewley preferences satisfy a weaker form of independence called Independence for Constant Weights. This topic gives us the opportunity to discuss the pioneeristic contributions of David Schmeidler on the weakening of the Independence axiom.
  • Imagem de Miniatura
    Artigo Científico
    Cobb-Douglas preferences under uncertainty
    (2013) JOSÉ HELENO FARO
    This paper axiomatizes Cobb-Douglas preferences under uncertainty. First, we extend the original Trockel (Econ Lett 30:7–10, 1989)’s axiomatic foundation to a general state space framework based on the Strong Homotheticity Axiom, obtaining also the incomplete case a la Bewley (Decis Econ Financ 25:79–110, 2002). We show that this key axiom for the Cobb-Douglas expected utility specification is refuted by Ellsberg’s uncertainty aversion behavioral pattern. Our main result provides a set of meaningful axioms characterizing Cobb-Douglas min-expected utility preferences, an important class of uncertainty averse preferences for studying the consequences of ambiguity in finance and other fields. Finally, we present briefly how to obtain more general representations like the variational case.