Entropy 2006, 8(1), 18-24; doi:10.3390/e8010018

Utility Function from Maximum Entropy Principle

Received: 4 December 2005; Accepted: 30 January 2006 / Published: 31 January 2006
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract: Recently we used the maximum entropy principle for finding the price density in a multi agent insurance market. The result is similar to what the Buhlmann had obtained by maximizing the utility function. Here we begin with the price density that is derived by applying the maximum entropy principle to a conservative economic system (exchange market), then reverse the Buhlmann calculation to find the utility function and the risk aversion of agents with respect to this density.
Keywords: utility function; price density; maximum entropy principle; risk aversion.
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MDPI and ACS Style

Darooneh, A.H. Utility Function from Maximum Entropy Principle. Entropy 2006, 8, 18-24.

AMA Style

Darooneh AH. Utility Function from Maximum Entropy Principle. Entropy. 2006; 8(1):18-24.

Chicago/Turabian Style

Darooneh, Amir H. 2006. "Utility Function from Maximum Entropy Principle." Entropy 8, no. 1: 18-24.

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