Since 2014
The new models of decision in risk: A critical review of the literature
Turkish Economic Review
View Archive Info| Field | Value | |
| Title |
The new models of decision in risk: A critical review of the literature
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| Creator |
TRABELSI, Mohamed Ali; Faculty of Economics and Management of Tunis, University of Tunis El Manar
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| Subject |
Risk aversion; Expected Utility (EU); Rank Dependent Expected Utility (RDEU); Gamble.
D81; C91. |
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| Description |
Abstract. The aim of the risk decision theory is to describe the behavior of agents in the face of several random prospects. Since it is difficult to describe these preferences, we seek to represent them. The use of a representative function of preferences has been for a long time, the usual method of describing behavior in a random context. The obvious advantage of this method is that it allows including these data in a formalized model and, by extension, to understand the optimization process underlying any decision. The determination of the representative function of preferences must be based on an axiomatic basis. From these axioms, an accurate specification of the value function will be derived. The purpose of this article is to examine the history of theories that have sought to determine a satisfactory criterion for responding to the risk decision problem and to analyze the contribution of these models.Keywords. Risk aversion, Expected Utility (EU), Rank Dependent Expected Utility (RDEU), Gamble.JEL. D81, C91.
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| Publisher |
Turkish Economic Review
Turkish Economic Review |
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| Contributor |
—
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| Date |
2019-07-04
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://www.kspjournals.org/index.php/TER/article/view/1856
10.1453/ter.v6i2.1856 |
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| Source |
Turkish Economic Review; Vol 6, No 2 (2019): June; 91-103
Turkish Economic Review; Vol 6, No 2 (2019): June; 91-103 2149-0414 |
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| Language |
eng
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| Relation |
http://www.kspjournals.org/index.php/TER/article/view/1856/1896
http://www.kspjournals.org/index.php/TER/article/downloadSuppFile/1856/951 |
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| Rights |
Copyright (c) 2019 Turkish Economic Review
http://creativecommons.org/licenses/by-nc/4.0 |
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