The normalized expected utility: entropy and variance model for decisions under risk
Autor(a) principal: | |
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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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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 |
dc.format.none.fl_str_mv |
application/pdf |
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) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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