Interactions Between Ageing and Risk Properties in the Analysis of Burn-in Problems

Rachele Foschi () and Fabio Spizzichino ()
Additional contact information
Rachele Foschi: Economics and Institutional Change Research Area, IMT Institute for Advanced Studies, 55100 Lucca, Italy
Fabio Spizzichino: Dipartimento di Matematica, Università degli Studi di Roma La Sapienza, 00185 Roma, Italy

Decision Analysis, 2012, vol. 9, issue 2, 103-118

Abstract: Several relevant problems in reliability can be looked at as problems of risk management and of decisions in the face of uncertainty. However, in this frame, the so-called burn-in problem can be seen as a problem of risk taking par excellence . In this paper, we in particular point out some aspects concerning interactions between the probabilistic model for lifetimes and considerations of an economic kind. As one of the features of our work, we hinge on some unexplored connections between ageing properties of a one-dimensional survival function Ḡ and risk-aversion-type properties of the function u ( t ) = bG ( t ), b > 0, when the latter is seen as a utility function.

Keywords: ageing; optimal decisions; utility functions; target-based approach (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://dx.doi.org/10.1287/deca.1120.0236 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ordeca:v:9:y:2012:i:2:p:103-118

Access Statistics for this article

More articles in Decision Analysis from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().