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Chinese Journal of Management Science ›› 2007, Vol. 15 ›› Issue (1): 16-20.

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The Functional Expressions of Utility Measured as Constant Risk Preference and Parameters Determination

JIANG Shu-yuan1, JIANG Qing-fang2   

  1. 1. School of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China;
    2. Department of Management, Nanjing Audit University, Nanjing 210029, China
  • Received:2006-01-16 Revised:2007-01-05 Online:2007-02-28 Published:2007-02-28

Abstract: This paper constitutes a model of risk preference by von Neumann-Morgenstern expected utility theory,and obtains special functional equation on unknown utility measure. Solving the special functional equation derives the calculable expressions of utility function. As the unknown parameters of the expressions can be determined,measuring utility is a simple calculation by known formulas.

Key words: risk preference, functional equation, utility function

CLC Number: