This dissertation describes two theories of risky choice based on a normatively axiomatized
partial order. The first theory is an atemporal alternative to von Neumann
and Morgenstern's Expected Utility Theory that accommodates the status quo bias, violations
of Independence and preference reversals. The second theory is an extension of
the Inter-temporal von Neumann-Morgenstern theory of Kreps and Porteus (1978) that
features a normatively deduced preference for flexibility. A substantial part of the thesis
is devoted to examining equilibrium implications of the inter-temporal theory. In particular,
a multi-agent multi-period Bayesian rational expectations equilibrium is shown to
exist under certain conditions. Implications to asset pricing are then investigated with
an explicit parameterization of the model. / Business, Sauder School of / Finance, Division of / Graduate
| Identifer | oai:union.ndltd.org:UBC/oai:circle.library.ubc.ca:2429/11161 |
| Date | 11 1900 |
| Creators | Sagi, Jacob S. |
| Source Sets | University of British Columbia |
| Language | English |
| Detected Language | English |
| Type | Text, Thesis/Dissertation |
| Format | 6932226 bytes, application/pdf |
| Rights | For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use. |
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