Similar to research on risky choice, the traditional analysis of intertemporal choice takes the view that an individual behaves so as to maximize the discounted sum of all future utilities. The well-known Allais paradox contradicts the fundamental postulates of maximizing the expected value or utility of a risky option. We describe a violation of the law of diminishing marginal utility as well ...

This paper discusses how utility can be taught in undergraduate courses microeconomics so that to illustrate total and marginal utility, the law of diminishing consumer rationality. Diminishing is essential describing rational behavior, overconsumption, oversaturation students economics. We demonstrate a quadratic logarithmic with subsequent forms shapes utility. From what it seems there no con...

Communities along the USA coast are highly vulnerable to coastal storms. Trends in population growth, climatic events and land use are likely to exacerbate future damages. Coastal management entities are faced with decisions about how to manage resources in a manner that improves environmental quality and provides the maximum benefit for coastal populations. This is particularly true along the ...

Prior accounting research argues that diminishing marginal returns on new investments drive lower persistence of accruals relative to cash flows. Macroeconomic research documents that marginal profitability is counter-cyclical, which implies that diminishing marginal returns on new investments are more pronounced during periods of expansions than recessions. Linking the cyclicality of diminishi...

We consider a multiagent resource allocation domain where the marginal production of each resource is diminishing. A set of identical, self-interested agents requires access to sharable resources in the domain. We present a distributed and random allocation procedure, and demonstrate that the allocation converges to the optimal in terms of utilitarian social welfare. The procedure is based on d...

We develop an equilibrium-econometric analysis in the context of rental housing markets with indivisibilities. The theory provides some bridge between a (competitive) market equilibrium theory and a statistical/econometric analysis. First, we develop this theory: The listing service of apartments, which we call the housing magazine, provides the information to both households (and landlords) an...

This paper explicitly tests for bid shading behavior in eBay auctions under the equilibrium concept of second-price auctions with common valuations and endogenous entry. Aided by flexible estimation techniques, the dynamics of eBay’s reputation mechanism is confirmed to closely mimic that of Sporas trust systems. The key finding is that bidders reduce their bids in response to a hypothetical in...