Credibilistic risk aversion and prudence
Irina Georgescu () and
International Journal of Business Innovation and Research, 2016, vol. 11, issue 1, 146-160
Risk aversion and prudence are well-studied topics in probabilistic risk theory. This paper uses credibility theory of B. Liu and Y. Liu to approach these closely related concepts. The risk situations are modelled by fuzzy variables and the indicators of risk aversion and prudence are defined in the context of credibilistic expected utility theory. Approximate calculation formulas for these indicators are established and their properties are examined. The paper establishes relationships between credibilistic risk aversion and prudence, as well as, between credibilistic prudence and optimal precautionary saving.
Keywords: credibility theory; risk aversion; prudence; precautionary saving; modelling; fuzzy logic; fuzzy variables; credibilistic expected utility theory; probabilistic risk theory. (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:11:y:2016:i:1:p:146-160
Access Statistics for this article
More articles in International Journal of Business Innovation and Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Carmel O'Grady ().