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
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 |
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