Theoretical Research on the Impact of Country Risk on Insurance Demand

2021 ◽  
Vol 8 (3) ◽  
pp. 451-458
Author(s):  
Bofang Li
Keyword(s):  
Expected Utility ◽  
Utility Maximization ◽  
Country Risk ◽  
Theoretical Research ◽  
Insurance Demand ◽  
Expected Utility Maximization ◽  
The Impact

Derive the optimal premium expenditure of the insured from the consumer expected utility maximization model. On this basis, the concept of country risk is introduced, and derive the optimal premium expenditure of the insured in the presence of country risk is. Then compare the optimal premium expenditure of the insured when there is country risk and when there is no country risk, and study the impact of country risk on insurance demand.

The Impact of the Structure of the Payoff Matrix on the Final Decision made Under Uncertainty

2018 ◽  
Vol 35 (01) ◽  
pp. 1850001
Author(s):  
Helena Gaspars-Wieloch
Keyword(s):  
Prospect Theory ◽  
Decision Maker ◽  
Expected Utility ◽  
Utility Maximization ◽  
Payoff Matrix ◽  
Final Decision ◽  
State Of Nature ◽  
Expected Utility Maximization ◽  
Alternative Procedures ◽  
The Impact

When decisions are made under uncertainty (DMUU), the decision maker either disposes of an interval of possible profits for each alternative (the interval DMUU) or disposes of a discrete set of payoffs for each decision and then the amount of the profit related to a given alternative depends on the state of nature (the scenario DMUU). Existing methods, used to generate the ranking of decisions and applied to the second problem mentioned, take, to a different extent, into consideration how particular profits assigned to alternatives are ordered in the payoff matrix and what the position of a given outcome is in comparison with other outcomes for the same state of nature. The author proposes and describes several alternative procedures that enable connecting the structure of the payoff matrix with the selected decision. These methods are adjusted to the purpose and the nature of the decision maker. They refer to the Savage’s approach, to the maximin joy criterion, to the normalization technique and to some elements used in expected utility maximization and prospect theory.

scholarly journals Reasoning about social preferences with uncertain beliefs

2021 ◽  
Author(s):  
isaac davis ◽  
Ryan W. Carlson ◽  
Yarrow Dunham ◽  
Julian Jara-Ettinger
Keyword(s):  
Expected Utility ◽  
Utility Maximization ◽  
Social Preference ◽  
Social Preferences ◽  
Social Judgments ◽  
Social Agents ◽  
Preference Reasoning ◽  
The Face ◽  
Expected Utility Maximization ◽  
Social Uncertainty

We propose a computational model of social preference judgments that accounts for the degree of an agents’ uncertainty about the preferences of others. Underlying this model is the principle that, in the face of social uncertainty, people interpret social agents’ behavior under an assumption of expected utility maximization. We evaluate our model in two experiments which each test a different kind of social preference reasoning: predicting social choices given information about social preferences, and inferring social preferences after observing social choices. The results support our model and highlight how un- certainty influences our social judgments.

Specialist versus Generalist Decision Making

2018 ◽  
Author(s):  
Armin W. Schulz
Keyword(s):  
Decision Making ◽  
Expected Utility ◽  
Utility Maximization ◽  
Decision Rules ◽  
Mental States ◽  
Vast Array ◽  
Expected Utility Maximization

A number of scholars argue that human and animal decision making, at least to the extent that it is driven by representational mental states, should be seen to be the result of the application of a vast array of highly specialized decision rules. By contrast, other scholars argue that we should see human and animal representational decision making as the result of the application of a handful general principles—such as expected utility maximization—to a number of specific instances. This chapter shows that, using the results of chapters 5 and 6, it becomes possible to move this dispute forwards: the account of the evolution of conative representational decision making defended in chapter 6 together with the account of the evolution of cognitive representational decision making defended in chapter 5, makes clear that both sides of this dispute contain important insights, and that it is possible to put this entire dispute on a clearer and more precise foundation. Specifically, I show that differentially general decision rules are differentially adaptive in different circumstances: certain particular circumstances favor specialized decision making, and certain other circumstances favor more generalist decision making.

Conclusion

2020 ◽  
pp. 248-250
Author(s):  
Paul Weirich
Keyword(s):  
Expected Utility ◽  
Utility Maximization ◽  
Risk Principle ◽  
Expected Utility Maximization ◽  
The Mean ◽  
Mean Risk

Recognizing that an act’s risk is a consequence of the act yields a version of expected-utility maximization that does not need adjustments for risk in addition to the probabilities and utilities of possible outcomes. This treatment of an act’s risk justifies the expected-utility principle, and the mean-risk principle, for evaluation of an act. Rational attitudes to risks explain the rationality of acting in accord with the principles. They ground the separability relations that support the principles. The expected-utility principle justifies a substantive, and not just a representational, version of the decision principle of expected-utility maximization. Consequently, the principle governs a single choice and not just sets of choices. It demands more than consistency of the choices in a set. It demands that each choice follow the agent’s preferences, and these preferences explain the rationality of a choice that complies with the principle.

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