• français
    • English
  • English 
    • français
    • English
  • Login
JavaScript is disabled for your browser. Some features of this site may not work without it.
BIRD Home

Browse

This CollectionBy Issue DateAuthorsTitlesSubjectsJournals BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesSubjectsJournals

My Account

Login

Statistics

View Usage Statistics

Behavioral biases and the representative agent

Thumbnail
View/Open
F0820d01.pdf (260.0Kb)
Date
2012-07
Dewey
Economie financière
Sujet
Behavioral agent; representative agent; neurofinance; Probability Weighting Function; Hyperbolic Discounting
JEL code
G11; D81; D84; D87; H43
Conference name
35th Seminar of the European Group of Risk and Insurance Economics
Conference date
09-2008
Conference city
Toulouse
Conference country
France
URI
https://basepub.dauphine.fr/handle/123456789/6511
Collections
  • CEREMADE : Publications
Metadata
Show full item record
Author
Jouini, Elyès
Napp, Clotilde
Type
Communication / Conférence
Item number of pages
28
Abstract (EN)
In this note, we consider an economy with heterogeneous agents, differing by their time preference rate and by their beliefs. We show that at the Pareto optimum, the representative agent exhibits interesting behavioral properties. More precisely, starting from a standard model with expected utility maximizers and exponential discounting, but allowing for heterogeneity among agentsí beliefs and time preference rates, we obtain at the representative agent level an inverse S-shaped probability distribution weighting function and hyperbolic discounting. We provide possible interpretation and applications for this result.

  • Accueil Bibliothèque
  • Site de l'Université Paris-Dauphine
  • Contact
SCD Paris Dauphine - Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16

 Content on this site is licensed under a Creative Commons 2.0 France (CC BY-NC-ND 2.0) license.