Title :
A possibilistic Pratt theorem
Author :
Georgescu, Irina
Author_Institution :
Dept. of Economic Cybern., Acad. of Economic Studies, Bucharest, Romania
Abstract :
The possibilistic risk premium is defined in a possibilistic context, made by a utility function, a fuzzy number and a weighting function. This notion measures the aversion to the possibilistic risk. The main result is a Pratt-type theorem on the possibilistic risk aversion. This result, combined with the Pratt theorem leads to a surprising result: the aversion to the probabilistic risk is equivalent to the aversion to the possibilistic risk.
Keywords :
fuzzy set theory; possibility theory; probability; utility theory; fuzzy number; possibilistic Pratt type theorem; possibilistic context; possibilistic risk aversion; possibilistic risk premium; utility function; weighting function; Economics; Fuzzy sets; Indexes; Intelligent systems; Possibility theory; Probabilistic logic; Random variables;
Conference_Titel :
Intelligent Systems and Informatics (SISY), 2010 8th International Symposium on
Conference_Location :
Subotica
Print_ISBN :
978-1-4244-7394-6
DOI :
10.1109/SISY.2010.5647299
