The carved and painted decorations in traditional Batak houses and buildings, gorga, are the source of their exoticism. There are no identical patterns of the ornaments within Batak houses and the drawings are closely related to the way ancient Batak capture the dynamicity of the growing “tree...

We introduce a “reason-based” way of rationalizing an agent’s choice behaviour, which explains choices by specifying which properties of the options or choice context the agent cares about (the “motivationally salient properties”) and how he or she cares about these properties (the...

The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage's Sure-Thing Principle. It has been put forward, e.g. by situations such as the Allais and Ellsberg paradoxes, that real-life situations can violate Savage's Sure-Thing Principle and...

We study the risk index of an additive gamble proposed in Aumann and Serrano (2008).We establish a generalized duality result for this index and use it to prove Yaari's (1969) alternative characterization of DARA utilities. A new characterization result for the risk index is obtained through...

Cosmetic dermatology is a marriage between medicine and business. Research in cosmetic dermatology shares the fundamental principles of clinical and pharmaceutical research. Research team can help the decision makers by giving a realistic picture of the uncertainties involved. Certain...

This paper is a contribution to the study of behavioral economics. It proposes a model of decision making process and includes the affective and cognitive systems, both them included when anyone evaluates the options to select one. First of all, a literature review was done. Secondly, an...

The Black Scholes Model (BSM) is one of the most important concepts in modern financial theory both in terms of approach and applicability. The BSM is considered the standard model for valuing options; a model of price variation over time of financial instruments such as stocks that can, among...

Certain commodity producers face uncertain output and price, but can trade financial derivatives on price. I consider how best to use a put option on price. I introduce the variance surface, which is a data visualization technique that shows the level of variance across a grid of values for the...

This document analyzes the changes that suffer the amounts demanded of a good, due to changes in its price. For this we use the decomposition in Income and Substitution effects posed by Slutsky and Hicks in their work concerning the analysis of the demand. In general, when the price of a good...