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A decision model based on expected utility, entropy and variance

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  • Brito, Irene

Abstract

A decision model - the expected utility, entropy and variance (EU-EV) model – is proposed, where the decision criterion depends on the uncertainty risk factors entropy and variance and on the subjective expected utility. The EU-EV model is applied to decision problems existing in the literature, and it is shown that they can be well explained with this model.

Suggested Citation

  • Brito, Irene, 2020. "A decision model based on expected utility, entropy and variance," Applied Mathematics and Computation, Elsevier, vol. 379(C).
    • Handle: RePEc:eee:apmaco:v:379:y:2020:i:c:s009630032030254x
    DOI: 10.1016/j.amc.2020.125285
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    References listed on IDEAS

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