PPT-Risky Curves: From Unobservable Utility to Observable Opportunity Sets

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. Outline. • Asymptotic stability.. • BIBO stability.. • . Controllability.. • Observability.. • Stabilizability.. • . Detectability. • Controllable realizations.. • Observable realizations.. P.V. . Viswanath. For a First Course in . INvestments. Learning Goals. 2. How do we characterize individuals’ preferences for taking risk?. How do we use utility functions over asset returns?. How do we evaluate investors’ risk preferences?. Indifference curves . Chapter 3. Budget line. 2. Points on the budget line indicate all the bundles of goods that the consumer can afford.. Good 2. 150. 50. 100. Good 1. 150. 100. 0. 50. Indifference Curve. William Greene. Stern School of Business. New York University. Part 6. Modeling Heterogeneity. Several Types of Heterogeneity. Differences across choice makers. Observable: Usually demographics such as age, sex. 14. February 26. th. , 2014. Lecture . 16. Ch. . 9. . Ordinal Utility:. Indifference Curve Analysis. Indifference . Curves. An . indifference curve. . represents all the combinations of the two goods amongst which. Lua Augustin, Savannah Guo, and Blair Marquardt. Learning Outcomes. To understand. :. What . is factor analysis.. What is its model.. Latent vs. observable variables; examples of each. .. Potential applications of factor analysis. Measurement. Ben Couch, Valuation Practice Fellow, FASB. Agenda. Fair value hierarchy. Level 1. Level 2. Level 3. Example. 2. Fair value hierarchy. Is there a quoted price for an identical asset or liability?. Warm-up Question. What do dating and marriage have to do with economics? . Scarcity. Choice. Utility maximization . Economics and Marriage. A market is any mechanism or institution that brings buyers together with sellers. x y: x is preferred strictly to y.. x . ~. y: x and y are equally preferred.. x y: x is preferred at least as much as is y.. p. ~. f. Preferences - A Reminder. Completeness. : For any two bundles x and y it is always possible to state either that . Shyam . S. under. JAPP Conference on Accounting and Risk Management. LSE, IE Business School and Univ. of Maryland. College Park, Maryland. May 29, 2014. “It is a veritable Proteus that changes its form every instant.”. 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).. Daniel Friedman, R. . Mark . Isaac, . Duncan . James . , and Shyam Sunder. Fifth . LeeX. International Conference on . Theoretical and Experimental Macroeconomics . Barcelona GSE Summer Forum, . Universitat. Lecture 2: Time and Risk. Shyam Sunder, Yale University. Yuji Ijiri Lectures. Tepper. School of Business, Carnegie Mellon University. Pittsburgh, August 22-26, 2016. An Invitation to Accounting. Causation . Introduction. Supply and Demand Models (Ch. 2) are useful for analyzing economic questions concerning markets.. How will increasing the real wage affect output?. In these models we summed each individuals demand to obtain the market demand curve..