Money Pumps and Bounded Rationality

• Tác giả: Joshua Lanier, Matthew Polisson, John K. -H Quah
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.46 Monetary policy
• Thông tin xuất bản: 2024
• Bộ sưu tập: Báo, Tạp chí
• ID: 202246

Tóm tắt

The standard criterion of rationality in economics is the maximization of a utility function that is stable across multiple observations of an agent's choice behavior. In this paper, we discuss two notions of the money pump that characterize two corresponding notions of utility-maximization. We explain the senses in which the amount of money that can be pumped from a consumer is a useful measure of the consumer's departure from utility-maximization.