This paper considers the effects of changes in risk on optimal decisions under risk in an analytical framework assuming …

Certain classes of system-level risk depend partly on decentralized lay decision making. For instance, an organization …-level misclassification costs, decentralized behavioral decision makers are biased toward under-detection, and system-level risk is …'s network security risk depends partly on its employees' responses to phishing attacks. On a larger scale, the risk within a …

This paper investigates the effect of ambiguity on personal vaccination decision. We first characterize the vaccination … decision in the absence of ambiguity. We then show that uncertainty about the probability of side effects and the efficacy of …

A three-dimension analytical framework for decision under risk is presented, in which preference is defined as a … except that the independence axiom is assumed only for the valuation of utility-reward (u) and disutility-risk (d), compound … utility theory (CUT) is developed that represents reference-dependent preferences in a straightforward manner. As a simple …

We consider a standard one-agent decision-making problem under risk and we address the following question: under what … conditions is utility maximization equivalent to 'risk' minimization, where the measure of risk used by the decision-maker is a … conservative coherent risk measure? …

-known paradoxa of decision theory. …In this paper, we propose an interpretation of the Hilbert space method used in quantum theory in the context of … decision making under uncertainty. For a clear comparison we will stay as close as possible to the framework of SEU suggested …

is not only risk averse but also regret averse. Regret-averse preferences are characterized by a modified utility … firm optimally increases (decreases) its futures position when the price risk possesses more positive (negative) skewness. …

This paper compares Bayesian decision theory with robust decision theory where the decision maker optimizes with … respect to the worst state realization. For a class of robust decision problems there exists a sequence of Bayesian decision … risk aversion and that decisions are insensitive (robust) to the precise assignment of prior probabilities. This holds …