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

Finance Economics Dynamic Programming

Cite as:

Adam Goldstein (2020). Did Ergodicity Economics and the Copenhagen Experiment Really Falsify Expected Utility Theory?. RESEARCHERS.ONE, https://www.researchers.one/article/2020-02-11.

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.

Published on : February 06 2020