Testing the expected utility maximization hypothesis with limited experimental data

In this article we use some old ideas of Franklin to derive the partial differential equation (St Robert Equation) characterizing the level curves of expected utility maximizing preferences over simple gambles. We also provide conditions under which an incomplete family of level curves permits an investigator to determine whether or not the subject maximizes expected utility and if so under what conditions preferences can be recovered uniquely. (C) 2004 Elsevier B.V. All rights reserved.