Subjective information in economic decision making

A.C.D. Donkers

Research output: ThesisDoctoral Thesis

Abstract

Economists have been rather skeptical towards the use of subjective information. This thesis shows that this type of information can be relevant for the empirical explanation of economic decisions. Three examples of subjective information, which are time preference, income uncertainty, and risk aversion, are studied extensively in this thesis. The models used in the analyses of the subjective information are based on models developed by economic psychologists. These models are different from the traditional discounted expected utility model most often used in economics. The major differences are the presence of loss aversion and probability weighting. An economic model that incorporates these differences is used to explain the equity premium puzzle.
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • van Soest, Arthur, Promotor
  • Melenberg, Bertrand, Co-promotor
Award date30 Jun 2000
Place of PublicationTilburg
Publisher
Print ISBNs9056680714
Publication statusPublished - 2000

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