Additive utility in prospect theory

Prospect theory is currently the main descriptive theory of decision under uncertainty. It generalizes expected utility by introducing nonlinear decision weighting and loss aversion. A difficulty in the study of multiattribute utility under prospect theory is to determine when an attribute yields a gain or a loss. One possibility, adopted in the theoretical literature on multiattribute utility under prospect theory, is to assume that a decision maker determines whether the complete outcome is a gain or a loss. In this holistic evaluation, decision weighting and loss aversion are general and attribute-independent. Another possibility, more common in the empirical literature, is to assume that a decision maker has a reference point for each attribute. We give preference foundations for this attribute-specific evaluation where decision weighting and loss aversion are depending on the attributes

Go with the flow: mechanisms driving water transport during vegetative growth and fruiting

Fungi need water for all stages of life. Notably, mushrooms consist of ∼90% water. Fungi degrade organic matter by secreting enzymes. These enzymes need water to be able to break down the substrate. For instance, when the substrate is too dry, fungi transport water from moist areas to arid areas by hydraulic redistribution. Once nutrients are freed from the substrate, they are taken up by transporters lining the cell membrane. Thereby an intracellular osmotic potential is created which is greater than that of the substrate, and water follows by osmosis. Aquaporins may facilitate water uptake depending on the conditions. Since fungi possess a cell wall, the cell volume will not increase much by water uptake, but the cell membrane will exert higher pressure on the cell wall, thereby building up turgor. Fungi have tightly coordinated osmotic regulatory controls via the HOG pathway. When water is getting scarce, this pathway makes sure that enough osmolytes are synthesized to allow sufficient water uptake for maintaining turgor homeostasis. The fungal network is interconnected and allows water flow when small pressure differences exist. These pressure differences can be the result of growth, differential osmolyte uptake/synthesis or external osmotic conditions. Overall, the water potential of the substrate and of fungal tissues determine whether water will flow, since water flows from an area of high- to a low water potential area, when unobstructed. In this review we aim to give a comprehensive view on how fungi obtain and translocate water needed for their development. We have taken Agaricus bisporus growing on compost and casing soil as a case study, to discuss water relations during fruiting in detail. Using the current state-of-the-art we found that there is a discrepancy between the models describing water transport to mushrooms and the story that water potentials tell us

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The way that you do it? An elaborate test of procedural invariance of TTO, using a choice-based design

The time tradeoff (TTO) method is often used to derive Quality-Adjusted Life Year health state valuations. An important problem with this method is that results have been found to be responsive to the procedure used to elicit preferences. In particular, fixing the duration in the health state to be valued and inferring the duration in full health that renders an individual indifferent, causes valuations to be higher than when the duration in full health is fixed and the duration in the health state to be valued is elicited. This paper presents a new test of procedural invariance for a broad range of time horizons, while using a choice-based design and adjusting for discounting. As one of the known problems with the conventional procedure is the violation of constant proportional tradeoffs (CPTO), we also investigate CPTO for the alternative TTO procedure. Our findings concerning procedural invariance are rather supportive for the TTO procedure. We find no violations of procedural invariance except for the shortest gauge duration. The results for CPTO are more troublesome: TTO scores depend on gauge duration, reinforcing the evidence reported when using the conventional procedure

Measuring ambiguity attitude: (Extended) multiplier preferences for the American and the Dutch population

Empirical studies of ambiguity aversion often use measures that are not grounded in theory. This paper shows how a theoretically-founded measure of ambiguity aversion can be derived from Hansen and Sargent’s theory of multiplier preferences. Multiplier preferences are used in macroeconomics to capture model uncertainty. At the micro level, they have not been applied yet, because they do not permit ambiguity seeking, which is usually observed for a substantial proportion of subjects. We give a preference foundation for (extended) multiplier preferences accommodating both ambiguity aversion and ambiguity seeking and we propose a simple method to measure them using matching probabilities. We illustrate our method in two large representative samples (Dutch and American) and obtain the first micro estimates of multiplier preferences

Development in Aspergillus

AbstractThe genus Aspergillus represents a diverse group of fungi that are among the most abundant fungi in the world. Germination of a spore can lead to a vegetative mycelium that colonizes a substrate. The hyphae within the mycelium are highly heterogeneous with respect to gene expression, growth, and secretion. Aspergilli can reproduce both asexually and sexually. To this end, conidiophores and ascocarps are produced that form conidia and ascospores, respectively. This review describes the molecular mechanisms underlying growth and development of Aspergillus

Do people really want to be nudged towards healthy lifestyles?

This paper assesses Thaler and Sunstein’s claim that policies that nudge individuals towards healthy lifestyles promote the welfare of those individuals, as judged by themselves. I argue that Thaler and Sunstein switch between two different interpretations of that clause. One interpretation gives the clause a wide range of applicability, but drains it of its content as a repudiation of paternalism. The other interpretation makes it more meaningful to say that people want to make the choices they are being nudged towards, but applies to a much narrower range of cases than Thaler and Sunstein have in mind

Measuring loss aversion under ambiguity: a method to make prospect theory completely observable

We propose a simple, parameter-free method that, for the first time, makes it possible to completely observe Tversky and Kahneman’s (1992) prospect theory. While methods exist to measure event weighting and the utility for gains and losses separately, there was no method to measure loss aversion under ambiguity. Our method allows this and thereby it can measure prospect theory’s entire utility function. Consequently, we can properly identify properties of utility and perform new tests of prospect theory. We implemented our method in an experiment and obtained support for prospect theory. Utility was concave for gains and convex for losses and there was substantial loss aversion. Both utility and loss aversion were the same for risk and ambiguity, as assumed by prospect theory, and sign-comonotonic trade-off consistency, the central condition of prospect theory, held