Abstract
In several cases of economic and social world we deal with situations of uncertainty with several risk components. Some of these risk parameters can be described probabilistically, and others possibilistically. In the first case parameters will be considered random variables and in the second case possibilistic distributions ( in particular fuzzy numbers). From here the idea of mixed vector appears, in which some risk components are random variables and others are fuzzy numbers. If all components are random variables, we deal with a probabilistic risk vector, and if all components are fuzzy numbers, we deal with a possibilistic risk vector. There is a rich literature dedicated to multidimensional risk aversion [27], [49], [50], [54]. Most of these papers try to generalize the theory of risk aversion developed by Arrow–Pratt in the unidimensional case. There are although notable differences between the multidimensional case and the unidimensional case. The multidimensional risk premium is not unique, which produces complications in comparing the risk premiums of different agents. Paper [36] is an attempt to treat risk aversion in case of possibilistic vectors.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2012 Springer-Verlag GmbH Berlin Heidelberg
About this chapter
Cite this chapter
Georgescu, I. (2012). Risk Aversion with Mixed Parameters. In: Possibility Theory and the Risk. Studies in Fuzziness and Soft Computing, vol 274. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-24740-8_7
Download citation
DOI: https://doi.org/10.1007/978-3-642-24740-8_7
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-24739-2
Online ISBN: 978-3-642-24740-8
eBook Packages: EngineeringEngineering (R0)