In this paper, we generalize the classic therapeutic decision-making model, developed by Pauker and Kassirer, from the expected utility(EU) to the rank-dependent utility (RDU) framework. In contrast with EU, the RDU can incorporate a physician's optimistic and pessimistic biases into...

The newsvendor model is a building block for inventory management under stochastic situation. This paper examines the effects of an additive and a multiplicative background risk separately on the optimal order quantity of a risk-averse newsvendor with Mean-Variance utility. We derive several...

The financial instability stemming from large volumes of simultaneous selling in the corporate bond market has been a topic of concern in recent years. Investors in this market care primarily about the downside risk of a firm given their concave payoff function, and this is precisely the...

The linkage of neighborhood multi-energy microgrids (MEMGs) may overcome the disadvantage of one single microgrid (MG) since surplus/deficient energy can meet balance internally and realize self-satisfaction. In order to realize successful cooperation of such a complicated energy system, optimal...