Choice of utility function form: its effect on classification of risk preferences and the prediction of farmer decisions
研究了斯里兰卡小宗出口作物农户的效用函数形式选择,发现指数、二次和三次函数对风险态度分类和收获策略预测有不同影响,其中指数函数预测成熟收获效果最佳。
In applications of expected utility analysis, researchers are confronted with a choice among several utility functional forms. Subjective utility values and probability distributions for price and yield were elicited from Sri Lankan producers of minor export crops. Exponential quadratic and cubic utility functions were estimated. The choice of functional form was found to affect both the classification of risk attitudes and the prediction of harvesting strategy. The exponential function was the best predictor of harvesting strategy because it was the best predictor of mature harvesting. All three functions were equally poor predictors of premature harvesting.