# Tag Info

### What is the consensus (if any) on Peters "The ergodicity problem in economics" (2019)?

Well there is no opinion poll among economists on specifically this problem, but what can be judged from reaction of economists the consensus is that the Ole Peters paper is misguided and irrelevant ...
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### An agent's expected utility depends only on mean and variance

In order to understand this problem, I will work through the generic case. Say that a user had generalized quadratic (Bernoulli) utility, similar to your problem: $$u(x) = \beta x^2 + \gamma x$$ and ...
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Accepted

### An agent's expected utility depends only on mean and variance

\begin{eqnarray*} \displaystyle U(L) & = &\sum_{s=1}^{S}\pi_s U(Y_s) = \sum_{s=1}^{S} \left(-\frac{1}{2}\pi_s(\alpha - Y_s)^2\right) = -\frac{1}{2}\sum_{s=1}^{S} \left(\pi_s(\alpha^2 + Y_s^2-2\...
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### What is the consensus (if any) on Peters "The ergodicity problem in economics" (2019)?

Junior econ professor here. I saw Ole Peter's work and I was intrigued, so I actually looked into it to see if there was something original/insightful for me to learn. I even run a little simulation ...
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### What is the consensus (if any) on Peters "The ergodicity problem in economics" (2019)?

I’am the guy who wrote the short note that was mentioned in the original question. You can reach the note here. https://osf.io/preprints/socarxiv/axkfg/ I got interested in Peter's paper because of my ...
Accepted

### Meaning of $dF(z)$ in expected utility framework

Not all cdf’s have a density function, (for example if $F$ is not differentiable). However, when they do have a density, the notation $dF(z)$ is equivalent to $f(z)dz$. When performing integrals. ...
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### How does expected utility theory treat losses?

Gains and losses presuppose a reference point, which is not a feature in standard expected utility theory. In this theory, the only argument in the utility over wealth is $w$, the absolute level of ...
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### Most utility functions under risk and uncertainty generalizes expected utility. What is deadly wrong if a model does not include EU as special case?

Many people accept the axiomatizations of expected utility as normatively appealing, especially in contexts of pure risk. For people with this view, rational decision-makers should behave in ...
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### Who is the first one to equate "rational" with "complete and transitive preference"?

As pointed in the comments this was done by Ragnar Frisch. At least Barten and Böhm. (1982) as well as Johansen (1969) attribute these axioms to one of these two publications: Frisch, Ragnar (...
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### Comparing & contrasting decision problems and normal games

Decision under uncertainty is sometimes called a "game against chance", and can thus be modeled as a two-player normal form game: the decision-maker vs Nature/Chance. The possible states ...
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Accepted

### Mixed strategy in extensive form games with complete and perfect information

I assume that implicit in the lemma is the condition "holding other players' strategies fixed". I'll also assume that the strategy space is finite. Given a profile of the other players' ...
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