Economic Theory Seminar
Discounted Subjective Expected Utility in Continuous Time
Lorenzo Bastianello (Università Ca' Foscari Venezia)
Abstract:
By embedding uncertainty into time, we obtain a conjoint axiomatic characterization of both Exponential Discounting and Subjective Expected Utility that accommodates arbitrary state and outcome spaces. In doing so, we provide a novel and simple time-interpretation of subjective probability. The subjective probability of an event is calibrated using time discounting.
Joint work with Vassili Vergopoulos.
Location:
CEPS ENS Paris-Saclay
4 avenue des Sciences, 91190, Gif-sur-Yvette
