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When economists look at utility maximizing, they do so assuming that the individual cares only about their own utility, and not about the bigger world in general. I propose that research is often not ...
We consider the problem of utility maximization for small traders on incomplete financial markets. As opposed to most of the papers dealing with this subject, the investors' trading strategies we ...
Rationality is usually defined in terms of expected utility maximization. This paper argues for defining it in terms of conditional expected utility maximization by showing this conception's superior ...
He proposed that decision-makers should be viewed as bounded rational, and offered a model in which utility maximization was replaced by satisficing.
The utility function can be used to derive the demand function, and both concepts relate to utility maximization.
Suboptimal sandwiches The bounded rationality argument goes like this: People are rational, utility-maximizing, optimizers. However, they have limits. Sometimes they lack information.
Read about the concept of utility in microeconomics, and learn why economists disagree about its usefulness in the analysis of actions.
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