Methods of Decision-Making Under Risk

Robert Rieg (), Ute Vanini () and Werner Gleißner ()
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Robert Rieg: Aalen University
Ute Vanini: Kiel University of Applied Science
Werner Gleißner: Future Value Group AG

Chapter Chapter 4 in Enterprise Risk Management, 2025, pp 67-81 from Springer

Abstract: Abstract Most managerial decisions are made under uncertainty about the decisions of other agents as well as about future events. This chapter outlines and explains several methods for dealing with such decisions under risk. All the methods described assume knowledge or at least some expectations about future events and decisions of other agents with some probability. However, this assumption is controversial, and some proponents argue that in a world of “radical uncertainty,” other ways of making decisions may be more appropriate.

Keywords: Decision-making; Decision tree; Discount rate; Net present value; Radical uncertainty; Real options; Scenario analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-031-86425-4_4

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DOI: 10.1007/978-3-031-86425-4_4

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