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


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

November 21, 2017
January 16, 2019
May 20, 2019
weighted quasi-arithmetic means, risk averse decision-making, comparison of utility functions

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.

<i>M<sup>f</sup><sub>w</sub></i>(<i>R</i>) and <i>M<sup>g</sup><sub>w</sub></i>(<i>R</i>) in Example 1

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

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.
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