Utility Functions for Nonmonetary Events
- 1 January 1990
- journal article
- research article
- Published by University of Illinois Press in The American Journal of Psychology
- Vol. 103 (4) , 449-470
- https://doi.org/10.2307/1423318
Abstract
Six experiments are described that use magnitude estimation methods to characterize a nonlinear (approximately square root) utility function for money. These same methods can be used to assign utilities to nonmonetary events and objects. The procedures permit a translation between the utility of such events and their monetary equivalents. The measure represents the incremental utilities of outcomes from a current neutral position. Positive returns grow more slowly than negative.sbd.it is a pessimist''s world. These utility measures are consonant with the form of the utility function hypothesized by Kahneman and Tversky (1979).This publication has 1 reference indexed in Scilit:
- Cross-Modality Matching of Money Against Other ContinuaPublished by Springer Nature ,1974