PPT-Utility Theory

John Lee Department of Political Science Florida State University Utility The idea that we can assign value to an action and then choose amongst a set of possible actions based on their value My grandma could offer me 50 or 100 I choose the offer that maximizes my utility In this case I choose 100. An . explanation. . of why an action is right or wrong or why a person or a person’s character is good or bad. Tells us what it is about an action that . makes it right. Moral Theory cont.. Moral theories alone are . . decisions. in . conditions. . of. . information. . uncertainty. Tomas . Macak. MANAGEMENT THEORY. Faculty of Economics and Management. Department of Management. Organization of teaching. Consultation time: Monday from 10.00 to 11.30 in the morning. Office No. E 468 (4th floor of the building of the Faculty of Business and Economics). Phone: 224 382 029, email: macak@pef.czu.cz. . Theory. - . complement. J.Skorkovský. ESF-KPH. Prospect versus Utility Theory. Marketers are implicitly interested in . how. and . why. people make decision . Having in mind the fact, that we are rational beings :. Consumer. Behavior. Chapter 3. Discussion Topics. The concept of consumer utility (satisfaction). Evaluation of alternative consumption bundles using . indifference. curves. What is the role of your budget constraint in determining what you purchase?. and its . Hidden Role . in Thinking about . Sunk Costs. Jim Stodder, RPI, Fall 2014. Daniel . Kahneman. & Amos . Tversky. . (Nobel, 2002) (Died, 1996). The ‘Flag’ of Prospect Theory. Abby . Yinger. Mathematics. Statistics. Decision Theory. Decision theory. The Decision . theory . is the theory . about decisions. The subject is not a very unified one. T. here . are many different ways to theorize about decisions, . U: O-> R (utility maps from outcomes to a real number). represents preferences over outcomes. ~ means indifference. We need a way to talk about how preferences interact with uncertainty:. A . lottery . of. . Consumer Behavior. Blog posts: "Utility". Theory of . Consumer . Behavior (AP only unit). Total Utility and Marginal Utility. Utility Maximization – equalizing marginal utility per dollar spent on various goods. Consumer Choice. Postulate: . an unproved and indemonstrable statement that should be taken for granted: used as an initial premise or underlying hypothesis in a process of . reasoning. Consumer choice postulate: People choose from available options to maximize their well-being (utility).. March 23, 2010. Outline. Intro & Definitions. Why learn about probabilities and risk?. What is learned?. Expected Utility. Prospect Theory. Scalar Utility Theory. Choices, choices, choices.... In the lab, reinforcement is often uniform. x0000x0000John Yinger HOUSING AND COMMUTING THE THEORY OF URBAN RESIDENTIAL STRUCTURE APPENDIXBASIC URBAN MODEL EXERCISESPart I Bid Functions and DensityFunctionsTheslope of the bidprice function is and . RATIONALITY – Some general comments. 2. 3. Decision Theory. Formidable foundations. Probability and reasoning about the future. Rational decision making. Deeply rooted in the Enlightenment. Major leaps in the mid-20. . and. . experimental. health . economics. Arthur E. Attema (Erasmus University Rotterdam). attema@eshpm.eur.nl. OHEJP Summer School, 26. th. August, 2019. Decision theory. 'Decision' . is the simplest element to be . Daniel Friedman, UC Santa Cruz. Shyam. Sunder, Yale University. (expanding into book with . Duncan James and R. Mark Isaac) . ESA Tucson, November 17, 2012. 2. Risky Curves. 2. Fire: Circa 1750 CE. Everyone knew fire to be an element.