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JACIII Vol.23 No.3 pp. 555-560
doi: 10.20965/jaciii.2019.p0555
(2019)

Paper:

Comparison of Risk Aversity for Two Utility Functions on ℝ2

Yuji Yoshida

Faculty of Economics and Business Administration, University of Kitakyushu
4-2-1 Kitagata, Kokuraminami, Kitakyushu 802-8577, Japan

Received:
November 21, 2017
Accepted:
January 16, 2019
Published:
May 20, 2019
Keywords:
weighted quasi-arithmetic means, risk averse decision-making, comparison of utility functions
Abstract
Comparison of Risk Aversity for Two Utility Functions on ℝ<sup>2</sup>

Mfw(R) and Mgw(R) in Example 1

Utility functions on two-dimensional regions are demonstrated for decision makers’ risk averse behavior by weighted quasi-arithmetic means. For two utility functions on two-dimensional regions, a concept is introduced that decision making with one utility is more risk averse than decision making with the other utility. A necessary condition and sufficient conditions for the concept are demonstrated by their utility functions.

Cite this article as:
Y. Yoshida, “Comparison of Risk Aversity for Two Utility Functions on ℝ2,” J. Adv. Comput. Intell. Intell. Inform., Vol.23, No.3, pp. 555-560, 2019.
Data files:
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Last updated on Sep. 19, 2019