Risk Averse Decisions in Business Planning

Anne M. Dillinger, William E. Stein, Philip Mizzi

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

Second‐order stochastic dominance is used to determine preferences among various investments for any risk‐averse decision maker. On the other hand, when faced with choosing between different insurance policies or disaster plans, a risk‐averse decision maker should use a type of stochastic dominance called variability ordering. In this situation, second‐order stochastic dominance has been used in previous research and is incorrect.

Original languageEnglish (US)
Pages (from-to)1003-1008
Number of pages6
JournalDecision Sciences
Volume23
Issue number4
DOIs
StatePublished - 1992

Keywords

  • Decision Analysis and Risk
  • Uncertainty

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Information Systems and Management
  • Management of Technology and Innovation

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