Characterizing the efficient set when preferences are state-dependent

Itzhak Zilcha*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

We consider economic models under uncertainty where risk-averse decision makers must choose from a given set of random variables. This paper develops a price characterization of the set of efficient state-payoff bundles when preferences are risk averse and state dependent. We also show how the set of such efficient bundles varies when different classes of state-dependent utility functions are considered.

Original languageEnglish
Pages (from-to)417-423
Number of pages7
JournalJournal of Economic Theory
Volume41
Issue number2
DOIs
StatePublished - Apr 1987

Funding

FundersFunder number
Foerder Institute for Economic Research at Tel-Aviv University
National Science FoundationSES-8408670

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