Choice under risk and the security factor: an axiomatic model
type: Item
instance of: scholarly article
title: Choice under risk and the security factor: an axiomatic model
zbMATH Open document ID: 0631.90005
DOI: 10.1007/BF00132460
author: Jean-Yves Jaffray
published in: Theory and Decision
publication date: 1988-01-01T00:00:00Z
review text: The particular attention paid by decision makers to the security level ensured by each decision under risk, which is responsible for the certainty effect, can be taken into account by weakening the independence and continuity axioms of expected utility theory. In the resulting model, preferences depend on: (i) the security level, (ii) the expected utility, offered by each decision. Choices are partially determined by security level comparison and completed by the maximization of a function, which express the existing tradeoffs between expected utility and security level, and is, at a given security level, an affine function of the expected utility. In the model, risk neutrality at a given security level implies risk aversion.
Mathematics Subject Classification ID: 91B16
Mathematics Subject Classification ID: 91B06
zbMATH DE Number: 4027130
zbMATH Keywords: risk aversion
zbMATH Keywords: security level
zbMATH Keywords: expected utility
zbMATH Keywords: risk neutrality
MaRDI profile type: Publication
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full work available at URL: https://doi.org/10.1007/bf00132460
OpenAlex ID: W2003408768
description: scientific article; zbMATH DE number 4027130