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Alternative: Behavior Of Income And Consumption Utility Utility Factor Analysis And Measurement

Posted on:2013-12-24Degree:MasterType:Thesis
Country:ChinaCandidate:Monastyrnaya AlisaFull Text:PDF
GTID:2249330377950646Subject:International trade
Abstract/Summary:PDF Full Text Request
This paper conducts a research on relationship between consumption utility and incomeutility, the main purpose of this research is to analyze behavioral coefficient and to encouragefollowing studies.The First Chapter discusses history of development, main scientific achievements,research methods and contribution of behavioral economics to the development of moderneconomic theory. The Second Chapter reviews main reference materials and main theories ofbehavioral economics. The Third Chapter discusses purposes and process of designing aquestionnaire, stages and subjects of survey. Chapter Four describes process of designing thesecond questionnaire, provides basic analysis of the survey results and compares Russian andChinese attitudes towards risk. Chapter Five makes a quantitative analysis of the research data.Chapter Six discusses application and importance of behavioral coefficient. Chapter Sevenmakes general conclusions about this paper, and discusses possibility and necessity of furtherresearch on finding behavioral coefficient.Classic economic Expected Utility theory is based on consumption utility that meanshappiness from getting an income comes from anticipation of future consumption. Getting anincome brings up memories of the past consumption, and that is why people feel happyanticipating it. But as studies show, future consumption is not the only factor that caninfluence general level of utility. Many people feel happy just because of the fact that theirtotal wealth increased. Moreover, if utility level decreased because of the financial loss, theamount of consumption to offset this loss must be several times bigger than the amount of thisloss.The main conclusion of this paper is:1. Factors like gender, marital status, age andnationality have no significant impact on behavioral coefficient.2. Behavioral coefficient hasa certain sensitivity to different sets of environment, moreover, behavioral coefficient showedmarginal increment.
Keywords/Search Tags:behavioral coefficient, consumption utility, income utility, Expected Utilitytheory
PDF Full Text Request
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