Title :
Risk Aversion through Fuzzy Numbers
Author :
Georgescu, Irina
Author_Institution :
Dept. of Economic Cybern., Acad. of Economic Studies, Bucharest, Romania
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;
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
DOI :
10.1109/CANS.2008.27
