The classical formula of certainty equivalent is reconsidered. Based on a modified proof of the original formula several alternative methods are derived with different orders of magnitude of their errors. This new method is then compared with the classical formula in a computer study showing the advantage of the new approach. Practical applications are also outlined to illustrate the methodology.
| Published in |
International Journal of Economic Behavior and Organization (Volume 3, Issue 2-1)
This article belongs to the Special Issue Recent Developments of Economic Theory and Its Applications |
| DOI | 10.11648/j.ijebo.s.2015030201.12 |
| Page(s) | 5-9 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2014. Published by Science Publishing Group |
Uncertainity, Certainty Equivalent, Economic Application
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APA Style
Sándor Molnár, Ferenc Szidarovszky. (2014). New Methods of Decision Making Under Uncertainty. International Journal of Economic Behavior and Organization, 3(2-1), 5-9. https://doi.org/10.11648/j.ijebo.s.2015030201.12
ACS Style
Sándor Molnár; Ferenc Szidarovszky. New Methods of Decision Making Under Uncertainty. Int. J. Econ. Behav. Organ. 2014, 3(2-1), 5-9. doi: 10.11648/j.ijebo.s.2015030201.12
AMA Style
Sándor Molnár, Ferenc Szidarovszky. New Methods of Decision Making Under Uncertainty. Int J Econ Behav Organ. 2014;3(2-1):5-9. doi: 10.11648/j.ijebo.s.2015030201.12
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Download@article{10.11648/j.ijebo.s.2015030201.12,
author = {Sándor Molnár and Ferenc Szidarovszky},
title = {New Methods of Decision Making Under Uncertainty},
journal = {International Journal of Economic Behavior and Organization},
volume = {3},
number = {2-1},
pages = {5-9},
doi = {10.11648/j.ijebo.s.2015030201.12},
url = {https://doi.org/10.11648/j.ijebo.s.2015030201.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.s.2015030201.12},
abstract = {The classical formula of certainty equivalent is reconsidered. Based on a modified proof of the original formula several alternative methods are derived with different orders of magnitude of their errors. This new method is then compared with the classical formula in a computer study showing the advantage of the new approach. Practical applications are also outlined to illustrate the methodology.},
year = {2014}
}
TY - JOUR T1 - New Methods of Decision Making Under Uncertainty AU - Sándor Molnár AU - Ferenc Szidarovszky Y1 - 2014/12/27 PY - 2014 N1 - https://doi.org/10.11648/j.ijebo.s.2015030201.12 DO - 10.11648/j.ijebo.s.2015030201.12 T2 - International Journal of Economic Behavior and Organization JF - International Journal of Economic Behavior and Organization JO - International Journal of Economic Behavior and Organization SP - 5 EP - 9 PB - Science Publishing Group SN - 2328-7616 UR - https://doi.org/10.11648/j.ijebo.s.2015030201.12 AB - The classical formula of certainty equivalent is reconsidered. Based on a modified proof of the original formula several alternative methods are derived with different orders of magnitude of their errors. This new method is then compared with the classical formula in a computer study showing the advantage of the new approach. Practical applications are also outlined to illustrate the methodology. VL - 3 IS - 2-1 ER -
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