Generic Impossibility of Partial Ex Post Implementation with General Utility Functions

2008 ◽  
Author(s):  
Tadashi Hashimoto
Keyword(s):  
Utility Functions ◽  
General Utility ◽  
Ex Post ◽  
Ex Post Implementation

Ex post implementation

2008 ◽  
Vol 63 (2) ◽  
pp. 527-566 ◽  
Author(s):  
Dirk Bergemann ◽  
Stephen Morris
Keyword(s):  
Ex Post ◽  
Ex Post Implementation

scholarly journals Efficiency, equity, and social rationality under uncertainty

2021 ◽  
Author(s):  
Kaname Miyagishima
Keyword(s):  
Simple Model ◽  
Social Welfare ◽  
Expected Utility ◽  
Risk Preferences ◽  
Utility Functions ◽  
Subjective Expected Utility ◽  
Risk Averse ◽  
Social Rationality ◽  
Certainty Equivalents ◽  
Ex Post

AbstractIn a simple model where agents’ monetary payoffs are uncertain, this paper examines the aggregation of subjective expected utility functions which are interpersonally noncomparable. A maximin social welfare criterion is derived from axioms of efficiency, ex post equity, and social rationality, combined with the independence of beliefs and risk preferences in riskless situations (Chambers and Echenique in Games Econ Behav 76:582–595, 2012). The criterion compares allocations by the values of the prospects composed of the statewise minimum payoffs evaluated by the certainty equivalents. Because of this construction, the criterion is egalitarian and risk averse.

Competitive equilibrium in two sided matching markets with general utility functions

2011 ◽  
Vol 10 (2) ◽  
pp. 34-36 ◽  
Author(s):  
Saeed Alaei ◽  
Kamal Jain ◽  
Azarakhsh Malekian
Keyword(s):  
Competitive Equilibrium ◽  
Utility Functions ◽  
Matching Markets ◽  
General Utility

scholarly journals INDEX INSURANCE DESIGN

2019 ◽  
Vol 49 (2) ◽  
pp. 491-523
Author(s):  
Jinggong Zhang ◽  
Ken Seng Tan ◽  
Chengguo Weng
Keyword(s):  
Numerical Procedure ◽  
Optimal Solution ◽  
Utility Functions ◽  
Index Insurance ◽  
Linear Type ◽  
Weather Index ◽  
Basis Risk ◽  
Temperature And Precipitation ◽  
General Utility ◽  
Highly Nonlinear

AbstractIn this article, we study the problem of optimal index insurance design under an expected utility maximization framework. For general utility functions, we formally prove the existence and uniqueness of optimal contract and develop an effective numerical procedure to derive the optimal solution. For exponential utility and quadratic utility functions, we obtain analytical expression of the optimal indemnity function. Our results show that the indemnity can be a highly nonlinear and even non-monotonic function of the index variable in order to align with the actual loss variable so as to achieve the best reduction in basis risk. Due to the generality of model setup, our proposed method is readily applicable to a variety of insurance applications including index-linked mortality securities, weather index agriculture insurance, and index-based catastrophe insurance. Our method is illustrated by numerical examples where weather index insurance is designed for protection against the adverse rice yield using temperature and precipitation as the underlying indices. Numerical results show that our optimal index insurance significantly outperforms linear-type index insurance contracts in terms of basis risk reduction.

scholarly journals Posterior implementation vs ex-post implementation

2007 ◽  
Vol 97 (1) ◽  
pp. 70-73 ◽  
Author(s):  
Philippe Jehiel ◽  
Moritz Meyer-ter-Vehn ◽  
Benny Moldovanu ◽  
William R. Zame
Keyword(s):  
Ex Post ◽  
Ex Post Implementation

scholarly journals The Limits of ex post Implementation

Econometrica ◽  
2006 ◽  
Vol 74 (3) ◽  
pp. 585-610 ◽  
Author(s):  
Philippe Jehiel ◽  
Moritz Meyer-ter-Vehn ◽  
Benny Moldovanu ◽  
William R. Zame
Keyword(s):  
Ex Post ◽  
Ex Post Implementation
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