Risks induced by extreme events are characterized by small or ambiguous probabilities, catastrophic losses, or windfall gains. Through a new functional, that mimics the restricted Bayes-Hurwicz criterion within the Choquet expected utility approach, it is possible to represent the decision-maker behavior facing both risky (large and reliable probability) and extreme (small or ambiguous probability) events. A new formalization of the precautionary principle (PP) is shown and a new functional, which encompasses both extreme outcomes and expectation of all the possible results for every act, is claimed.
Scheda prodotto non validato
Scheda prodotto in fase di analisi da parte dello staff di validazione
|Titolo:||A rational decision rule in facing extreme events|
|Citazione:||Basili, M. (2006). A rational decision rule in facing extreme events. RISK ANALYSIS, 26, 1721-1728.|
|Appare nelle tipologie:||1.1 Articolo in rivista|