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To solve old problems of economics. The experimental background

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  • Harin, Alexander

Abstract

Old problems of the mathematical description of the economical behavior of a man are briefly reviewed. They are a comparison of choices of a man between uncertain and sure games and the radically different behavior of a man in different domains. The proposed solution of the problems consists in purely mathematical method and models and is briefly reviewed in the Appendix. The main attention is paid to the analysis of the experimental support of this possible solution. The generally accepted random incentive experimental procedures are discussed. A “certain-uncertain” inconsistency between the certain type of the choices and the uncertain type of the incentives is revealed and analyzed.

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  • Harin, Alexander, 2023. "To solve old problems of economics. The experimental background," MPRA Paper 117157, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117157
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    File URL: https://mpra.ub.uni-muenchen.de/117157/1/Certain-Uncertain%20%20230426.pdf
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    More about this item

    Keywords

    behavior; decision; prospect theory; utility; experiment; incentive; economics;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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