Risk and Regret in Banking
نویسندگان
چکیده
We model how decisions about the allocation of available funds to loans and Treasuries are dependent on perceptions about risk and regret in the banking industry. Our discussion is based on utility theory where a regret attribute is considered alongside a risk component as an integral part of the objective function. In addition, we provide a comparison between a riskand a regret-averse banks. In order to accomplish the latter, we represent the main results graphically.
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