Experimental test of utility maximization

Yuqing He

No 2012-32, Economics Discussion Papers from Kiel Institute for the World Economy

Abstract: The study tests the cardinal utility maximization hypothesis by an experimental procedure in a framework of utility scaling approach following the psychophysical-econometric paradigm, conceived in He (Psychophysical Interpretation for Utility Measures, 2011). It reveals (i) the utility maximization can be tested and has been supported by experimental results; (ii) the utility scaling approach following the psychophysical econometric paradigm offers a new foundation to discuss the utility concept; and (iii) it is necessary to distinguish the perception utility and emotion utility to respectively describe economic choices and enjoyment choices.

Keywords: utility maximization; experiment; Klein-Rubin utility function; perception utility; emotion utility (search for similar items in EconPapers)
JEL-codes: A10 D01 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-exp, nep-neu and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201232

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