Optimising risk reduction: An expected utility approach for marginal risk reduction during regulatory decision making
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چکیده
منابع مشابه
Optimising risk reduction: An expected utility approach for marginal risk reduction during regulatory decision making
In practice, risk and uncertainty are essentially unavoidable in many regulation processes. Regulators frequently face a risk-benefit trade-off since zero risk is neither practicable nor affordable. Although it is accepted that cost–benefit analysis is important in many scenarios of risk management, what role it should play in a decision process is still controversial. One criticism of cost–ben...
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The application and estimation of expected utility based decision models would benefit from having additional simple and flexible functional forms to represent risk preferences. The literature so far has provided these functional forms for the utility function itself. This work shows that functional forms for the marginal utility function are as useful, are easier to provide, and can represent ...
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ژورنال
عنوان ژورنال: Reliability Engineering & System Safety
سال: 2009
ISSN: 0951-8320
DOI: 10.1016/j.ress.2009.05.005