The normalized expected utility: entropy and variance model for decisions under risk

Detalhes bibliográficos
Autor(a) principal: Brito, Irene
Data de Publicação: 2022
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: https://hdl.handle.net/1822/79133
Resumo: The normalized expected utility - entropy and variance (NEU-EV) decision model and associated risk measure are proposed for the analysis and modelling of decisions under risk. The model depends on normalized entropy and variance and expected utility, can be applied to decision problems depending on actions, where the states have different numbers of outcomes. Several properties of risk perception and examples of certainty effects, common ratio effects and common consequence effects are analysed using this model, considering actions with non-negative outcomes. The results show that the NEU-EV model is an adequate model for explaining these risk decision problems.
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spelling The normalized expected utility: entropy and variance model for decisions under riskRisk decision modelExpected utilityEntropy and varianceCommon consequence effectCommon ratio effectCertainty effectScience & TechnologyThe normalized expected utility - entropy and variance (NEU-EV) decision model and associated risk measure are proposed for the analysis and modelling of decisions under risk. The model depends on normalized entropy and variance and expected utility, can be applied to decision problems depending on actions, where the states have different numbers of outcomes. Several properties of risk perception and examples of certainty effects, common ratio effects and common consequence effects are analysed using this model, considering actions with non-negative outcomes. The results show that the NEU-EV model is an adequate model for explaining these risk decision problems.Acknowledgements The author thanks A.A.J. Marley and J. Yang for helpful comments, suggestions and ideas. The author thanks the reviewers for useful comments. The research was partially financed by Portuguese Funds through FCT (?Fundac ? ?o para a Ci?ncia e a Tecnologia?) within the Projects UIDB/00013/2020 and UIDP/00013/2020.ElsevierUniversidade do MinhoBrito, Irene2022-092022-09-01T00:00:00Z2024-10-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/79133eng0888-613X10.1016/j.ijar.2022.06.005https://www.sciencedirect.com/science/article/pii/S0888613X22000949info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:31:30Zoai:repositorium.sdum.uminho.pt:1822/79133Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:26:45.314973Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The normalized expected utility: entropy and variance model for decisions under risk
title The normalized expected utility: entropy and variance model for decisions under risk
spellingShingle The normalized expected utility: entropy and variance model for decisions under risk
Brito, Irene
Risk decision model
Expected utility
Entropy and variance
Common consequence effect
Common ratio effect
Certainty effect
Science & Technology
title_short The normalized expected utility: entropy and variance model for decisions under risk
title_full The normalized expected utility: entropy and variance model for decisions under risk
title_fullStr The normalized expected utility: entropy and variance model for decisions under risk
title_full_unstemmed The normalized expected utility: entropy and variance model for decisions under risk
title_sort The normalized expected utility: entropy and variance model for decisions under risk
author Brito, Irene
author_facet Brito, Irene
author_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Brito, Irene
dc.subject.por.fl_str_mv Risk decision model
Expected utility
Entropy and variance
Common consequence effect
Common ratio effect
Certainty effect
Science & Technology
topic Risk decision model
Expected utility
Entropy and variance
Common consequence effect
Common ratio effect
Certainty effect
Science & Technology
description The normalized expected utility - entropy and variance (NEU-EV) decision model and associated risk measure are proposed for the analysis and modelling of decisions under risk. The model depends on normalized entropy and variance and expected utility, can be applied to decision problems depending on actions, where the states have different numbers of outcomes. Several properties of risk perception and examples of certainty effects, common ratio effects and common consequence effects are analysed using this model, considering actions with non-negative outcomes. The results show that the NEU-EV model is an adequate model for explaining these risk decision problems.
publishDate 2022
dc.date.none.fl_str_mv 2022-09
2022-09-01T00:00:00Z
2024-10-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/1822/79133
url https://hdl.handle.net/1822/79133
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0888-613X
10.1016/j.ijar.2022.06.005
https://www.sciencedirect.com/science/article/pii/S0888613X22000949
dc.rights.driver.fl_str_mv info:eu-repo/semantics/embargoedAccess
eu_rights_str_mv embargoedAccess
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dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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