Money Pumps and Bounded Rationality
Fuente:
arXiv
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| Autores principales: | , , |
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| Formato: | Preprint |
| Publicado: |
2024
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| Acceso en línea: | |
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| _version_ | 1866917633073348608 |
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| author | Lanier, Joshua Polisson, Matthew Quah, John K. -H. |
| author_facet | Lanier, Joshua Polisson, Matthew Quah, John K. -H. |
| contents | The standard criterion of rationality in economics is the maximization of a utility function that is stable across multiple observations of an agent's choice behavior. In this paper, we discuss two notions of the money pump that characterize two corresponding notions of utility-maximization. We explain the senses in which the amount of money that can be pumped from a consumer is a useful measure of the consumer's departure from utility-maximization. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2404_04843 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Money Pumps and Bounded Rationality Lanier, Joshua Polisson, Matthew Quah, John K. -H. Theoretical Economics The standard criterion of rationality in economics is the maximization of a utility function that is stable across multiple observations of an agent's choice behavior. In this paper, we discuss two notions of the money pump that characterize two corresponding notions of utility-maximization. We explain the senses in which the amount of money that can be pumped from a consumer is a useful measure of the consumer's departure from utility-maximization. |
| title | Money Pumps and Bounded Rationality |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2404.04843 |