Abstract
The normalized expected utility - entropy and variance (NEU-EV) decision model and associated risk measure are proposed for the analysis and modelling of decisions under risk. The model depends on normalized entropy and variance and expected utility, can be applied to decision problems depending on actions, where the states have different numbers of outcomes. Several properties of risk perception and examples of certainty effects, common ratio effects and common consequence effects are analysed using this model, considering actions with non-negative outcomes. The results show that the NEU-EV model is an adequate model for explaining these risk decision problems.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
