Decision making is informed by appraisals of appetitive cues and their associated opportunities for rewards. Such appraisals can be modulated by cognitive regulation strategies in order to promote goal-directed choices. Little is known about how cognitive regulation strategies, especially reappraisal, alter risk taking during decision making. To characterise the effect of reappraisal on risk ta...

Anticipated reward magnitude and probability comprise dual components of expected value (EV), a cornerstone of economic and psychological theory. However, the neural mechanisms that compute EV have not been characterized. Using event-related functional magnetic resonance imaging, we examined neural activation as subjects anticipated monetary gains and losses that varied in magnitude and probabi...

In this paper, we explore a distributionally robust reinsurance problem that incorporates the concepts of Glue Value-at-Risk and expected value premium principle. The focuses on stop-loss contracts with known mean variance loss. optimization can be formulated as minimax problem, where inner involves maximizing over all distributions same variance. It is demonstrated represented either three-poi...

Theorem 2. If we compare the expected value of DE reported in Equation (4) with the value of the estimator WE in Equation (3), we can notice strong similarities. The main difference is that in DE the sample mean of variable Xi and its probability of being the maximum are computed w.r.t. two independent set of samples, while in WE these two quantities are positively correlated. It follows that W...

This paper provides empirical evidence that firm size, liquidity, and Value-at-Risk (VaR) explain the cross-sectional variation in expected returns, while market beta and total volatility have almost no power to capture the cross-section of expected returns at the firm level. The strong positive relation between average returns and VaR turns out to be robust across different investment horizons...

In the best case using an abstraction hierarchy in problem solving can yield an exponential speed up in search e ciency Such a speed up is predicted by var ious analytical models developed in the literature and e ciency gains of this order have been con rmed empir ically However these models assume that the Down ward Re nement Property DRP holds When this property holds backtracking never need ...

Uncertainty theory is a branch of mathematics based on normality, monotonicity, self-duality, countable subadditivity, and product measure axioms. Different from randomness and fuzziness, uncertainty theory provides a new mathematical model for uncertain phenomena. A key concept to describe uncertain quantity is uncertain variable, and expected value operator provides an average value of uncert...