The Demand Curve of Genetically Modified Foods——decision making in ambiguous state
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| Title | The Demand Curve of Genetically Modified Foods——decision making in ambiguous state
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| Author | Yao Dongmin and Zhang Pengyuan |
| Organization | Central University of Finance and Economics |
| Email | yaodongminn@163.com；zpy776489845@outlook.com |
| Key Words | Genetically modified foods(GMF); Ambiguity; Income threshold; Slutsky substitution matrix |
| Abstract | According to the ambiguity of consumers in choosing genetically modified foods(GMF), traditional research methods based on VNM no longer apply. In order to find out reason of consumers’ behavior as well as the concept of elastic theory, this article tries to solve this problem by the method of CEU model, we compared the traditional OEU model and CEU model and find the differences in income threshold, meanwhile we compute the Slutsky substitution matrix of the two models. The two parameter included in CEU model: self-confidence and optimism level, made the difference between the CEU model and traditional OEU model. After discussing the parameter, we find the linear relationship of Slutsky substitution matrix under two models and figure out the estimation of substitution, which is onducive to policy makers for the policy making of GMF. |
| Serial Number | WP1265 |
| Time | 2018-02-23 |
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