Development of a Weighted Additive Model for Certainty Equivalents of Binary Gambles that are Decomposed into Risky and Sure Parts | Chapter 6 | Current Aspects in Business, Economics and Finance Vol. 4

 In the sense that binary bets are divided into safe bets and hazardous bets, this chapter offers a weighted additive model for the certainty equivalents of these bets. Weight is used to assess the impact of combining the choice for a safe investment with the sure reward. First, the addition of a specified gain and a conditional certainty equivalent is used to decompose each gamble's certainty equivalent. In order to describe the conditional certainty equivalent as a multiplicative form by weight, two more criteria are added.

Author(s) Details:

Yutaka Matsushita,
Kanazawa Institute of Technology, 3-1, Yatsukaho, Hakusan, Ishikawa - 924-0838, Japan.

Please see the link here: https://stm.bookpi.org/CABEF-V4/article/view/8290