Can forbidden zones for the expectation explain noise influence in behavioral economics and decision sciences?
Alexander Harin ()
MPRA Paper from University Library of Munich, Germany
The present article is devoted to discrete random variables that take a limited number of values in finite closed intervals. I prove that if non-zero lower bounds exist for the variances of the variables, then non-zero bounds or forbidden zones exist for their expectations near the boundaries of the intervals. This article is motivated by the need in rigorous theoretical support for the analysis of the influence of scattering and noise on data in behavioral economics and decision sciences.
Keywords: probability; dispersion; variance; noise; economics; utility theory; prospect theory; behavioral economics; decision sciences (search for similar items in EconPapers)
JEL-codes: C02 C1 D8 D81 D84 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm, nep-evo and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/76240/1/MPRA_paper_76240.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:76240
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().