In allocating goods with no use of monetary transfers, random allocation mechanisms can be designed in order to elicit information on preference intensities. I study the nontransfer allocation of two ex-ante identical objects under Bayesian incentive compatibility, with symmetric agents and independent private valuations. I …nd the ex-ante utilitarian-optimal mechanism, in which the probability...

Over the past fteen years, the theory of choice under uncertainty has undergone radical change. The pivotal contribution was Machinaas (1982) demonstration that a large class of preferences could be locally approximated by expected-utility func-tionals and that global preferences inherited properties, such as risk aversion, of the local utility functions. Less progress has been made, however, i...

IntroductIon Classical economic approaches to the study of preferences and risky choices assume that human preferences are stable and rational. However, subsequent empirical research has demonstrated that preferences are often constructed and that choices are influenced by a variety of factors that frequently deviate from normative decision-making models. While many of these studies have confir...

A method is developed to estimate jointly risk preferences and technology under general conditions. The approach is illustrated in an application to the analysis of U.S. corn-soybean acreage decisions over time. The results provide useful information on the nature of farmers' risk preferences and on the influence of price risk and production risk on acreage allocation and fanners' welfare.

Fuzzy portfolio models have received many researchers’ focus on the issue of risk preferences. The based guaranteed return rates has been developing and considering dimension excess investment for investors in different However, not only but also shortage to selected should be considered preferences, including risk-seeking, risk-neutral, risk-averse, by degrees dimensions investment. A comparis...

A key challenge associated with compositions is that they must often function in volatile environments, where the parameters of the component Web services may change during execution. Failure to adapt to such changes may result in sub-optimal compositions. Value of changed information (VOC) offers a principled and recognized approach for selectively querying component services for their revised...

The main objective of this paper is to present a theoretical framework that conceptualizes technology adoption as a decision process involving information acquisition by farmers who face yield uncertainty and vary in their risk preferences. This is done by integrating the microeconomic foundations used to analyze production uncertainty at the farm level with the traditional technological adopti...

McKinsey–Tarski (1944), Shehtman (1999), and Lucero-Bryan (2011) proved completeness theorems for modal logics with modalities 2, 2 and ∀, and [∂] and ∀, respectively, with topological semantics over the real numbers. We give short proofs of these results using lexicographic sums of linear orders.

The paper investigates the public’s attitude towards monetary union arrangements associated with different levels of monetary policy autonomy. The results indicate that support for monetary union declines significantly with expected loss of autonomy. Survey data from Kenya shows that public support for the proposed East African Community monetary union is highest in an arrangement where the cou...

Risk attitudes include risk aversion as well as higher-order risk preferences such as prudence and temperance. This article analyzes the effects of such preferences on medical test and treatment decisions, represented either by test and treatment thresholds or-when the test result is not given-by optimal cutoff values for diagnostic tests. For a risk-averse decision maker, effective treatment i...