• xmlui.mirage2.page-structure.header.title
    • français
    • English
  • Help
  • Login
  • Language 
    • Français
    • English
View Item 
  •   BIRD Home
  • CEREMADE (UMR CNRS 7534)
  • CEREMADE : Publications
  • View Item
  •   BIRD Home
  • CEREMADE (UMR CNRS 7534)
  • CEREMADE : Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesTypeThis CollectionBy Issue DateAuthorsTitlesType

My Account

LoginRegister

Statistics

Most Popular ItemsStatistics by CountryMost Popular Authors
Thumbnail

Behavioral Biases and the Representative Agent

Jouini, Elyès; Napp, Clotilde (2012), Behavioral Biases and the Representative Agent, Theory and Decision, 73, 1, p. 97-123. http://dx.doi.org/10.1007/s11238-011-9274-3

View/Open
behavSSRN202.pdf (413.0Kb)
Type
Article accepté pour publication ou publié
Date
2012
Journal name
Theory and Decision
Volume
73
Number
1
Publisher
Springer
Pages
97-123
Publication identifier
http://dx.doi.org/10.1007/s11238-011-9274-3
Metadata
Show full item record
Author(s)
Jouini, Elyès
Napp, Clotilde cc
Abstract (EN)
In this paper, we show that behavioral features can be obtained at a group level when the individuals of the group are heterogeneous enough. More precisely, starting from a standard model of Pareto optimal allocations, with expected utility maximizers and exponential dis- counting, but allowing for heterogeneity among agentsíbeliefs and time preference rates, we show that the representative agent exhibits interesting behavioral properties. In particular, we obtain an inverse S-shaped probability distribution weighting function and hyperbolic discounting. We provide possible interpretation as well as applications for this result.
Subjects / Keywords
Hyperbolic Discounting; Behavioral Agent; Neurofinance; Representative Agent; Probability Weighting Function
JEL
D87 - Neuroeconomics
D03 - Behavioral Microeconomics: Underlying Principles
H43 - Project Evaluation; Social Discount Rate
D84 - Expectations; Speculations
G11 - Portfolio Choice; Investment Decisions
D81 - Criteria for Decision-Making under Risk and Uncertainty

Related items

Showing items related by title and author.

  • Thumbnail
    Behavioral biases and the representative agent 
    Jouini, Elyès; Napp, Clotilde (2012-07) Communication / Conférence
  • Thumbnail
    Cognitive biases and the representative agent 
    Jouini, Elyès; Napp, Clotilde (2009) Document de travail / Working paper
  • Thumbnail
    Is there a pessimistic bias in individual and collective beliefs ? Theory and Evidence 
    Napp, Clotilde; Jouini, Elyès; Ben Mansour, Selima (2006) Communication / Conférence
  • Thumbnail
    Unbiased Disagreement and the Efficient Market Hypothesis 
    Jouini, Elyès; Napp, Clotilde (2009) Communication / Conférence
  • Thumbnail
    Unbiased Disagreement in financial markets, waves of pessimism and the risk return tradeoff 
    Napp, Clotilde; Jouini, Elyès (2011) Article accepté pour publication ou publié
Dauphine PSL Bibliothèque logo
Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16
Phone: 01 44 05 40 94
Contact
Dauphine PSL logoEQUIS logoCreative Commons logo