Risk Averse Decisions in Business Planning

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

doi:10.1111/j.1540-5915.1992.tb00431.x

Risk Averse Decisions in Business Planning

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

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	1003-1008
Number of pages	6
Journal	Decision Sciences
Volume	23
Issue number	4
DOIs	https://doi.org/10.1111/j.1540-5915.1992.tb00431.x
State	Published - Jul 1992

Keywords

Decision Analysis and Risk
Uncertainty

ASJC Scopus subject areas

General Business, Management and Accounting
Strategy and Management
Information Systems and Management
Management of Technology and Innovation

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10.1111/j.1540-5915.1992.tb00431.x

Cite this

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title = "Risk Averse Decisions in Business Planning",

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.",

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author = "Dillinger, {Anne M.} and Stein, {William E.} and Philip Mizzi",

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AB - 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.

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KW - Uncertainty

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Risk Averse Decisions in Business Planning

Abstract

Keywords

ASJC Scopus subject areas

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