Risk Aversion through Fuzzy Numbers

Author

Georgescu, Irina

Author_Institution

Dept. of Economic Cybern., Acad. of Economic Studies, Bucharest, Romania

fYear

2008

fDate

8-10 Nov. 2008

Firstpage

174

Lastpage

182

Abstract

This paper is concerned with an approach of risk aversion by possibility theory. We introduce and study new possibilistic risk indicators. The main notions are the possibilistic risk premium and the possibilistic relative risk premium associated with a fuzzy number and a utility function. We also give formulae for computing them. They extend to possibility theory the classic notions of risk premium and relative risk premium. We show by an example how the main possibilistic risk indicators are computed using trapezoidal fuzzy numbers.

Keywords

economic indicators; fuzzy set theory; number theory; possibility theory; risk analysis; utility theory; possibilistic relative risk premium; possibilistic risk indicator; possibility theory; risk aversion; trapezoidal fuzzy number; utility function; Artificial intelligence; Biomedical computing; Biomedical equipment; Economic indicators; Frequency; Fuzzy sets; Medical services; Possibility theory; Reactive power; Uncertainty; possibilistic risk premium; possibility theory; risk aversion;

fLanguage

English

Publisher

ieee

Conference_Titel

Complexity and Intelligence of the Artificial and Natural Complex Systems, Medical Applications of the Complex Systems, Biomedical Computing, 2008. CANS '08. First International Conference on

Conference_Location

Targu Mures, Mures

Print_ISBN

978-0-7695-3621-7

Type

conf

DOI

10.1109/CANS.2008.27

Filename

5231442