AN ANALYSIS OF RISK TAKING IN TERMS OF POWER AND COMPARISON LEVEL

Abstract

An attempt was made in this paper to account for a person's showing a consistent preference between two gambles that differ in variance (i. e., in degree of riskinesss) but have the same expected value (where expected value is defined as the sum of all the possible payoffs from the gamble, each one multiplied by its objective probability of occurrence). Researchers in decision theory, starting from the assumption that the person must be maximizing utility, have advanced two major explanations for such a preference.

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1963
Accession Number
AD0608436

Entities

People

  • Nicholas Bateson
  • Peter Gumpert

Organizations

  • University of North Carolina at Chapel Hill

Tags

Communities of Interest

  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Decision Theory
  • Probability

Readers

  • Computational Modeling and Simulation
  • Game Theory.