Announcement

Collapse
No announcement yet.
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • experiment choice results and estimate subject utility from socials preferences model

    Dear Statlist member,

    Could you help me to resolve this problem?

    A subject X takes 5 distinct decisions over 5 periods.
    The utility function of the subject X is represented by a function type
    U (β) = constant or U (α) according to the periods. α and β represent social preference parameters (table 1)

    My objective is to measure the weight of the parameters α and β on all 5 observations of the subject.
    Which econometric test with notions of optimization (optimum parameters β and α) can be considered in this case?

    Table 1 : Subject X utility estimate in 5 periods
    Round 1 U= 13-1,8β
    Round 2 14-1,2β
    Round 3 0,6α+14
    Round 4 0,2α-15,33
    Round 5 15,66-0,8β

  • #2
    Reminder :
    The term with alpha "envy is a relevant parameter of disadvantageous inequality" measures the utility loss from disadvantageous inequality
    The term with beta "the guilt parameter" measures the loss from advantageous inequality
    Following assumption, our model combined with Ferh and Schimidt (FS) model assume that
    β< α and 0<β<1

    Comment

    Working...
    X