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Risk Aversion and Individual Preferences Modelling

Author

Listed:
  • Constantin ANGHELACHE

    (Bucharest University of Economic Studies, “Artifex” University Bucharest)

  • Madalina Gabriela ANGHEL

    (Artifex University Bucharest)

  • Aurelian DIACONU

    (Artifex University Bucharest)

Abstract

Confronting risky situations is a feature of any decision making, in general, but, especially for specialized decision making contexts. Risk aversion concentrates the problems of modeling individual preferences. Models can grasp with accuracy and largely enough the fundamental human tendencies. As consequence, understanding economic behavior confronted to risk might be understood. Modeling market forecasting activities is possible based on “marginal consumer”. Thus, the vague use of mathematical instruments is necessary, but not enough as condition to develop an economic analysis. A historical approach of risk analysis might bring an idea regarding the development of the concept instruments used today when analyzing “risky choices”

Suggested Citation

  • Constantin ANGHELACHE & Madalina Gabriela ANGHEL & Aurelian DIACONU, 2016. "Risk Aversion and Individual Preferences Modelling," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(1), pages 77-82, January.
    • Handle: RePEc:rsr:supplm:v:64:y:2016:i:1:p:77-82
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    References listed on IDEAS

    as
    1. Yaari, Menahem E, 1987. "The Dual Theory of Choice under Risk," Econometrica, Econometric Society, vol. 55(1), pages 95-115, January.
    2. Segal, Uzi & Spivak, Avia, 1990. "First order versus second order risk aversion," Journal of Economic Theory, Elsevier, vol. 51(1), pages 111-125, June.
    3. Ross, Stephen A, 1981. "Some Stronger Measures of Risk Aversion in the Small and the Large with Applications," Econometrica, Econometric Society, vol. 49(3), pages 621-638, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Oleksandr Dorokhov & Liudmyla Dorokhova & Milica Delibasic & Justas Streimikis, 2017. "Consumer Behavior Modeling - Fuzzy Logic Model for Air Purifiers Choosing," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(4), pages 61-77.
    2. Madalina-Gabriela ANGHEL & Marian SFETCU & Gyorgy BODO & Doina BUREA, 2017. "Bank Risk Management," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(11), pages 87-94, November.
    3. Constantin Anghelache & Bodo Gyorgy, 2016. "Theoretical aspects regarding systemic risk and managerial decisions during the crisis," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(12), pages 110-116, December.
    4. Aurelian DIACONU & Alexandru BADIU & Doina AVRAM & Doina BUREA & Marius POPOVICI, 2017. "Operational Risk Management," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(5), pages 221-229, May.

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