Results 41 to 50 of about 3,807 (197)

Welfare consequences of the compound risks of index insurance

Journal of Risk and Insurance, EarlyView.
Abstract Index insurance is an attractive variant on the standard insurance contract that allows the determination of a loss event to be defined by one or more thresholds on an index that is positively correlated with actual losses. Index insurance also comes with a compound risk, basis risk.
Glenn Harrison, Jimmy Martí­nez‐Correa, Karlijn Morsink, Jia Min Ng, J. Todd Swarthout   +4 more
wiley   +1 more source

Taking Risks, With and Without Probabilities

Noûs, EarlyView.
ABSTRACT Some hold that expected utility is too restrictive in the way it handles risk. Risk‐weighted expected utility is an alternative that allows decision‐makers to have a range of attitudes toward probabilistic risk. It holds that any attitude within this range is instrumentally rational, since these attitudes represent different, equally good ...
Lara Buchak
wiley   +1 more source

Models in Decision‐Making Under Risk and Uncertainty

Journal of Economic Surveys, Volume 40, Issue 1, Page 304-320, February 2026.
ABSTRACT This paper systematically compares dominant frameworks for modeling decision‐making under risk and uncertainty, evaluating their theoretical trade‐offs and practical relevance for economic research. We establish key criteria for model selection—including predictive accuracy, descriptive realism, computational tractability, and ecological ...
Martin Höppner
wiley   +1 more source

Modified Standard Risk Assessment Based on Optimal Capacity Investment Decisions and Portfolio Optimization (Infrastructure Speculation and New Financial Instrument) [PDF]

تحقیقات مالی اسلامی (پیوسته), 2013
In order to use an Islamic financial instrument, this paper intends to measure and evaluate negative and positive deviations from target rate of return in investment opportunity evaluation,that leads to presenting an upside potential- adjusted risk ...
Fereidoun Rahnamay Roudposhti, Yavar Mirabasi   +1 more
doaj  

Asymmetric Priors in Agency Under Maximum‐Entropy

The Manchester School, Volume 94, Issue 1, Page 116-124, January 2026.
ABSTRACT This article analyzes the agency relationship in a setting where principal and agent have asymmetric priors on output. These differing priors stem from distinct information sets regarding the (unknown) output distribution, being assumed that both principal and agent rely on the maximum‐entropy principle to estimate the respective distributions.
Óscar Gutiérrez
wiley   +1 more source

Uncertainty in Household Behavior Drives Large Variation in the Size of the Levee Effect

Journal of Flood Risk Management, Volume 18, Issue 4, December 2025.
ABSTRACT Coastal cities face increasing flood hazards due to climate change. Physical infrastructures, such as levees, are commonly used to reduce flood hazards. To effectively manage flood risks, it is important to understand the degree to which physical infrastructures change both hazard and exposure.
Parin Bhaduri, Adam B. Pollack, James Yoon, Pranab K. Roy Chowdhury, Heng Wan, David Judi, Brent Daniel, Vivek Srikrishnan   +7 more
wiley   +1 more source

A Quantum-like Model of Selection Behavior

, 2017
In this paper, we introduce a new model of selection behavior under risk that describes an essential cognitive process for comparing values of objects and making a selection decision.
Asano, Masanari, Basieva, Irina, Khrennikov, Andrei, Ohya, Masanori, Tanaka, Yoshiharu   +4 more
core   +1 more source

On the Ellsberg paradox

, 2015
This paper proposes a model of expected utility maximization which accounts for the Ellsberg paradox and for Machina’s extension of it. In the model, decision makers use a commutative ring in which the real numbers are embedded as a subring, and they do so in order to decompose their beliefs into ‘ambiguous’ or ‘unambiguous’ parts – with unambiguous ...
openaire   +2 more sources

Anticomonotonicity for preference axioms: The natural counterpart to comonotonicity

Theoretical Economics, Volume 20, Issue 3, Page 831-855, July 2025.
Comonotonicity (same variation) of random variables minimizes hedging possibilities and has been widely used, e.g., in Gilboa and Schmeidler's ambiguity models. This paper investigates anticomonotonicity (opposite variation (AC)), the natural counterpart to comonotonicity. It minimizes leveraging rather than hedging possibilities.
Giulio Principi, Peter P. Wakker, Ruodu Wang   +2 more
wiley   +1 more source

How can we apply decision‐making theories to wild animal behavior? Predictions arising from dual process theory and Bayesian decision theory

American Journal of Primatology, Volume 87, Issue 1, January 2025.
The theoretical amount of mental effort an animal should exert depending on how routine a situation is, how accurately a cue or signal predicts an outcome, or how computationally complex a problem is. Abstract Our understanding of decision‐making processes and cognitive biases is ever increasing, thanks to an accumulation of testable models and a large
Julie A. Teichroeb, Eve A. Smeltzer, Virendra Mathur, Karyn A. Anderson, Erica J. Fowler, Frances V. Adams, Eric N. Vasey, Ludmila Tamara Kumpan, Samantha M. Stead, T. Jean M. Arseneau‐Robar   +9 more
wiley   +1 more source