Learn how utility functions derive demand functions and their role in maximizing consumer satisfaction and economic decision making.

We study utility maximization for power utility random fields with and without intermediate consumption in a general semimartingale model with closed portfolio constraints. We show that any optimal ...

Rationality is usually defined in terms of expected utility maximization. This paper argues for defining it in terms of conditional expected utility maximization by showing this conception's superior ...

We estimate real-world private firm default probabilities over a fixed time horizon. The default probabilities are conditioned on a vector of explanatory variables which include financial ratios, ...