Forbidden zones for the expectation. New mathematical results for behavioral and social sciences

Harin, Alexander (2018): Forbidden zones for the expectation. New mathematical results for behavioral and social sciences.

Abstract

A forbidden zones theorem, mathematical approach and model are proposed in the present article. In particular, the approach supposes that people decide as if there were some biases of the expectations of measurement data. The article is motivated by the need of a theoretical support for the practical analysis performed for the purposes of utility and prospect theories, behavioral economics, psychology, decision and social sciences. Possible general consequences and applications of the theorem and approach for a noise and biases of measurement data are preliminary considered as well.

• Item Type: MPRA Paper
• Language: English
• Keywords: probability; variance; noise; bias; measurement; utility theory; prospect theory; behavioral economics; psychology; decision sciences; social sciences
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty

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