A theorem of existence of ruptures in the probability scale has been proven. The theorem can be used, e.g., in economics and forecasting. It can assist to solve paradoxes such as Allais paradox and the “four-fold-pattern” paradox and to create the correcting formula of forecasting.

The theorem of existence of the ruptures in the probability scale has been proved for a discrete case. The theorem can be used, e.g., in economics and forecasting. It can assist to solve paradoxes such as Allais paradox and the “four-fold-pattern” paradox and to create the correcting formula...

The theorems of existence of the ruptures have been proved. The ruptures can exist near the borders of finite intervals and of the probability scale. The theorems can be used, e.g., in economics and forecasting.

This paper derives an adjusted Black-Scholes pricing formula. In separating risk and uncertainty using the robust control technique, we find that both uncertainty and risk raise management’s subjective evaluation of real options. We suggest a simple method to filter the risk of the project and...

The book is divided into five parts. The essence of behavioural finance is presented in the first parts. Fuzzy generalizations of some mathematical concepts are presented in the second part. The impact of selected behavioural premises for imprecise estimation of expected return is described in...

Uncertainty and certainty of organizational-economic systems are their integral properties. Existence and development of any object in stochastic conditions is not obviously possible without presence of uncertain conditions and the certain factors determining the subsequent conditions of...

Experimental economics methods were used to assess public understanding of information in weather forecasts and test whether the participants were able to make better decisions using the probabilistic information presented in table or bar graph formats than if they are presented with a...

The article considers the science problem of identification of a life cycle of an economic agent in particular and of organizational-economic system in general. As an alternative solution of this problem the author proposes to use an universal index – stability index, which is directly linked...

In this paper I present a simple model through which I examine how large unwanted outcomes in a process subject to one’s decisions can be avoided. The paper has implications for decision makers in the field of economics, financial markets and also everyday life. Probably the most interesting...

The proof of the theorem of existence of the ruptures, namely the proof of maximality, is improved. The theorem may be used in economics and explain the well-known problems such as Allais’ paradox. Illustrated examples of ruptures are presented.