Four Climbers Dead On Everest, 'Mountain Of Extremes'
Four have died in the span of four days on Mount Everest, including a Sherpa and two Westerners. Two other climbers are missing.
20 Gadgets Which Make Life Simpler
Every day, we come up against annoying things that no one has ever found a way to resolve which works all the time. But in some cases, thanks to human ingenuity we are moving towards this. Here are 20...
Risk Taking Across Life Span: The Effects Of Hardship
With increasing age, the propensity to take physical, social, legal or financial risks decreases. Researchers from the University of Basel and the Max Planck Institute for Human Development in Berlin ...
Risk: Your Best Friend and Worst Enemy -- The Motley Fool
A few things you should know about it. Risk fills in the gaps between your plans and the relentless power of chance, accident, luck, and misinformation. It sits over your shoulder while you're plannin...
Decision theory
Decision theory or theory of choice in economics, psychology, philosophy, mathematics, computer science, and statistics is concerned with identifying the values, uncertainties and other issues relevan...
Four Climbers Dead On Everest, 'Mountain Of Extremes'
Four have died in the span of four days on Mount Everest, including a Sherpa and two Westerners. Two other climbers are missing.
20 Gadgets Which Make Life Simpler
Every day, we come up against annoying things that no one has ever found a way to resolve which works all the time. But in some cases, thanks to human ingenuity we are moving towards this. Here are 20...
Response surface methodology
In statistics, response surface methodology (RSM) explores the relationships between several explanatory variables and one or more response variables. The method was introduced by G. E. P. Box and K....
Risk Taking Across Life Span: The Effects Of Hardship
With increasing age, the propensity to take physical, social, legal or financial risks decreases. Researchers from the University of Basel and the Max Planck Institute for Human Development in Berlin ...
Risk aversion
Risk aversion is a concept in economics and finance, based on the behavior of humans (especially consumers and investors) while exposed to uncertainty to attempt to reduce that uncertainty.Risk aversi...
Cobb–Douglas production function
In economics, the Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or mor...
Ellsberg paradox
The Ellsberg paradox is a paradox in decision theory in which people's choices violate the postulates of subjective expected utility. It is generally taken to be evidence for ambiguity aversion. The p...
Expected utility hypothesis
In economics, game theory, and decision theory the expected utility hypothesis refers to a hypothesis concerning people's preferences with regard to choices that have uncertain outcomes (gambles). Thi...
St. Petersburg paradox
The St. Petersburg lottery or St. Petersburg paradox is a paradox related to probability and decision theory in economics. It is based on a particular (theoretical) lottery game that leads to a random...
Prospect theory
Prospect theory is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known. The theory sta...
Risk neutral
In economics and finance, risk neutral preferences are neither risk averse nor risk seeking. A risk neutral party's decisions are not affected by the degree of uncertainty in a set of outcomes, so a r...
Risk
Risk is the potential of losing something of value. Values (such as physical health, social status, emotional well being or financial wealth) can be gained or lost when taking risk resulting from a gi...
Utility maximization problem
In microeconomics, the utility maximization problem is the problem consumers face: "how should I spend my money in order to maximize my utility?" It is a type of optimal decision problem.
Suppose ...
Risk-seeking
In economics and finance, a risk-seeker or risk-lover is a person who has a preference for risk. While most investors are considered risk averse, one could view casino-goers as risk-seeking. If offer...
Generalized expected utility
The expected utility model developed by John von Neumann and Oskar Morgenstern dominated decision theory from its formulation in 1944 until the late 1970s, not only as a prescriptive, but also as a de...
Attribute substitution
Attribute substitution is a psychological process thought to underlie a number of cognitive biases and perceptual illusions. It occurs when an individual has to make a judgment (of a target attribute)...
Favourite-longshot bias
In gambling and economics, the favourite-longshot bias is an observed phenomenon where on average, bettors tend to overvalue "long shots" and undervalue favourites. That is, in a horse race where one ...
Loss aversion
In economics and decision theory, loss aversion refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Most studies suggest that losses are twice as powerful, psychological...
Cumulative prospect theory
Cumulative prospect theory (CPT) is a model for descriptive decisions under risk and crisis which was introduced by Amos Tversky and Daniel Kahneman in 1992 (Tversky, Kahneman, 1992). It is a further ...
Framing (social sciences)
In the social sciences, framing comprises a set of concepts and theoretical perspectives on how individuals, groups, and societies organize, perceive, and communicate about reality. Framing involves t...
Anchoring
Anchoring or focalism is a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions. During decision m...
Moral hazard
In economics, moral hazard occurs when one person takes more risks because someone else bears the burden of those risks. A moral hazard may occur where the actions of one party may change to the detri...
Insurance
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent,...