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Should Agricultural And Resource Economists Care That The Subjective Expected Utility Hypothesis Is False?

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  • Woodward, Richard T.

Abstract

This paper argues that the subjective expected utility (SEU) hypothesis has serious limitations in both positive and normative analysis. In addition to experimental evidence, we discuss examples where alternatives to the SEU model provide a richer framework for the study problems of choice under uncertainty.

Suggested Citation

  • Woodward, Richard T., 1998. "Should Agricultural And Resource Economists Care That The Subjective Expected Utility Hypothesis Is False?," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20941, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:20941
    DOI: 10.22004/ag.econ.20941
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    2. Weber, Elke U. & Johnson, Eric J., 2012. "Psychology and behavioral economics lessons for the design of a green growth strategy," Policy Research Working Paper Series 6240, The World Bank.

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