1 / 1

Julide Yazar Department of Economics, Ohio Wesleyan University

Interactive Computer Experiments with a Virtual Consumer. Julide Yazar Department of Economics, Ohio Wesleyan University. Interview a Virtual Consumer HAL. Revealed Preference Experiments. Application: Insurance Market.

quintin
Télécharger la présentation

Julide Yazar Department of Economics, Ohio Wesleyan University

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Interactive Computer Experiments with a Virtual Consumer Julide Yazar Department of Economics, Ohio Wesleyan University Interview a Virtual Consumer HAL Revealed Preference Experiments Application: Insurance Market Students ask HAL to make consumption choices for different price and income values of their choice. They use direct and indirect revealed preference arguments to trap the indiffence curve between the worse-off and better-off sets using monotonicity and convexity assumptions. Results are summarized in graphical form Students ask HAL to rank consumption bundles and use his answers to learn about his preferences Monotonicity and (optional) Convexity Assumptions Results are summarized in graphical form Better Bundles Worse Bundles User defined utility functions or random choices Special cases: Perfect Complements and Perfect Substitutes Insurance for HAL ( : premium, : deductible) Accident: with probability No Accident with probability Given HAL’s driving record (probability of accident) and survey results, design the following for the insurance company Optimal Insurance Policy (Premium / Deductible) Optimal Insurance Policy for given deductible/ premium Worksheets Implementation Software developed in MATLAB. It can be compiled using MATLAB compiler for various platforms (Win, MacOS X, Unix). The compiled version does not require MATLAB software at the student computer. A Java version is planned for web deployment.

More Related