Did Ergodicity Economics and the Copenhagen Experiment Really Falsify Expected Utility Theory?

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Abstract

Contrary to Ole Peters' claims in a recent Nature Physics article [1], the "Copenhagen Experiment" did not falsify Expected Utility Theory (EUT) and corroborate Ergodicity Econonomics.  The dynamic version of of EUT, multi-period EUT, predicts the same change in risk aversion that EE predicts when the dynamics are changed from multiplicative to additive.

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➤  Version 1 (2020-02-06)

Citation

Adam A. Goldstein (2020). Did Ergodicity Economics and the Copenhagen Experiment Really Falsify Expected Utility Theory?. Researchers.One, https://researchers.one/articles/did-ergodicity-economics-and-the-copenhagen-experiment-really-falsify-expected-utility-theory/5f52699d36a3e45f17ae7e3a/v1.

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