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Production, safety, exchange, and risk

Author

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  • Kjell Hausken

Abstract

Two agents convert resources into safety investment and production while exchanging goods voluntarily. Safety investment ensures reduction of costly risk. High unit cost of safety effort reduces both productive effort and safety effort, which reduces income.

Suggested Citation

  • Kjell Hausken, 2011. "Production, safety, exchange, and risk," International Journal of Business Continuity and Risk Management, Inderscience Enterprises Ltd, vol. 2(4), pages 346-350.
    • Handle: RePEc:ids:ijbcrm:v:2:y:2011:i:4:p:346-350
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    Cited by:

    1. Yong Wu & Gengzhong Feng & Richard Y. K. Fung, 2018. "Comparison of information security decisions under different security and business environments," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 69(5), pages 747-761, May.
    2. Wu, Di & Yan, Xiangbin & Peng, Rui & Wu, Shaomin, 2020. "Risk-attitude-based defense strategy considering proactive strike, preventive strike and imperfect false targets," Reliability Engineering and System Safety, Elsevier, vol. 196(C).

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