Some Econometric Problems in the Measurement of Utility

@article{citeulike:94776, abstract = {Econometric problems in the measurement of utility are noted and solutions provided. When lotteries which are used to elicit risk preferences are chained or linked they compound error terms. If a utility index is constructed to estimate the utility function, the estimates will be inefficient and possibly biased. An econometric model that attaches an additive error term to the response of the decision maker and does not require indexing is shown to be a better alternative.}, author = {Knowles, Glenn J. }, citeulike-article-id = {94776}, journal = {American Journal of Agricultural Economics}, keywords = {economics, technique, utility}, number = {4}, pages = {505--510}, posted-at = {2005-02-21 17:16:50}, priority = {3}, title = {Some Econometric Problems in the Measurement of Utility}, url = {http://www.jstor.org/stable/1240930}, volume = {66}, year = {1984} }

TY - JOUR ID - citeulike:94776 L3 - citeulike-article-id:94776 TI - Some Econometric Problems in the Measurement of Utility JF - American Journal of Agricultural Economics VL - 66 IS - 4 SP - 505 EP - 510 N2 - Econometric problems in the measurement of utility are noted and solutions provided. When lotteries which are used to elicit risk preferences are chained or linked they compound error terms. If a utility index is constructed to estimate the utility function, the estimates will be inefficient and possibly biased. An econometric model that attaches an additive error term to the response of the decision maker and does not require indexing is shown to be a better alternative. KW - economics KW - technique KW - utility AU - Knowles, Glenn PY - 1984/// UR - http://www.jstor.org/stable/1240930 ER -