Threshold Theory – modelling risk attitude

Risk attitudes in risk-based design: Considering risk attitude using utility theory in risk-based design

Engineering risk methods and tools account for and make decisions about risk using an expected-value approach. Psychological research has shown that stakeholders and decision makers hold domain-specific risk attitudes that often vary between individuals and between enterprises. Moreover, certain companies and industries (e.g., the nuclear power industry and aerospace corporations) are very risk...

History-dependent risk attitude

We propose a model of history-dependent risk attitude (HDRA), allowing the attitude of a decision-maker (DM) towards risk at each stage of a T -stage lottery to evolve as a function of his history of disappointments and elations in prior stages. We establish an equivalence between the existence of an HDRA representation and two documented cognitive biases. First, the DM’s risk attitudes are rei...

Capturing Intrinsic Risk Attitude

The paper introduces a new concept of intrinsic risk attitude. In contrast to the common Arrow-Pratt measure, the present concept is directly tied to preferences on the multidimensional consumption space and is independent of the way we measure consumption, of the commodity under observation, and of market prices or liquidity constraints. The measure relies on intertemporal choice to distinguis...

Managing Group Risk Attitude

Modelling Customer's Attitude Towards E-Government Services

e-Government structures permits the government to operate in a more transparent and accountable manner of which it increases the power of the individual in relation to that of the government. This paper identifies the factors that determine customer’s attitude towards e-Government services using a theoretical model based on the Technology Acceptance Model. Data relating to the constructs were c...