Speaker: | Wolfgang Karl Härdle |
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Speaker Intro: | |
Host: | |
Description: |
This paper develops a model of rational behavior under uncertainty, in which the agent maximizes the stream of the future -quantile utilities. That is, the agent has a quantile utility preference instead of the standard expected utility. Quantile preferences have useful advantages, such as robustness and ability to capture heterogeneity. Agents tend to distort their beliefs though and therefore we look at Rank Dependent (RD) i.e. quantile preferences derived from distorted distributions. |
Time: | 2018-10-23(Tuesday)16:40-18:00 |
Venue: | N302, Econ Building |
Organizer: | WISE& SOE |