Abstract
Utility theory belongs to a very interesting part of a modern decision making theory. We develop the basic concept of utility theory on a determination of a personal utility function which was founded empirically by short personal interview. We suggest a calibration of theoretical utility function by expected utility maximization criterion. Moreover, on the basis of calibration of utility functions we determine a model of specific values of a maximal and minimal annual premium acceptable for an insured and for an insurer, too.
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Špirková, J. (2013). Calibration of Utility Function. In: Bustince, H., Fernandez, J., Mesiar, R., Calvo, T. (eds) Aggregation Functions in Theory and in Practise. Advances in Intelligent Systems and Computing, vol 228. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-39165-1_27
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DOI: https://doi.org/10.1007/978-3-642-39165-1_27
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-39164-4
Online ISBN: 978-3-642-39165-1
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