Prudence and preference for flexibility gain

DOI10.1016/J.EJOR.2020.04.051MaRDI QIDQ2023960zbMATH OpenOpenAlexFDO

Authors Daniel Danau

Publication date 3 May 2021

Published in European Journal of Operational Research (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.ejor.2020.04.051

zbMATH Keywords

choice between distributionschoice between lotteriesflexibility gainprudenceutility premium

Mathematics Subject Classification ID

Decision theory (91B06) Individual preferences (91B08)

Recommendations

• Preference for flexibility in the absence of learning: The risk attitude effect
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Cites work

• Flexibility and Uncertainty
• Optimal investment under operational flexibility, risk aversion, and uncertainty
• Optimal prevention and prudence in a two-period model
• Outside Risk Aversion and the Comparative Statics of Increasing Risk in Quasi-Linear Decision Models
• Real options with constant relative risk aversion
• Strong Increases in Risk and Their Comparative Statics
• The impact of prudence on optimal prevention

Cited in

(2)

• Investment flexibility and the acceptance of risk
• Preference for flexibility in the absence of learning: The risk attitude effect

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