DISCONTINUOUS UTILITY IN AGRICULTURAL RISK MODELING

Michael D. Weiss

No 278524, 1985 Annual Meeting, August 4-7, Ames, Iowa from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Conditions are developed for the theoretically sound use of discontinuous utility functions to represent behavior under risk. The dangers of spurious use of discontinuous utility in (1) empirical studies and (2) cases in which a riskless asset is available, are highlighted. Related problems in the agricultural economics literature are discussed.

Keywords: Agricultural and Food Policy; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 15
Date: 1985-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea85:278524

DOI: 10.22004/ag.econ.278524

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