We investigate the impact of a non-financial background risk ε̃ on the preference rankings between two independent financial risks z̃1 and z̃2 for an expected-utility maximizer. More precisely, we provide necessary and sufficient conditions for the alternative (x0 + z̃1, y0 + ε̃) to be preferred to (x0 + z̃2, y0 + ε̃) whenever (x0 + z̃1, y0) is preferred to (x0 + z̃2, y0). Utility functions that preserv...

Based on the polyhedral representation of Künzi-Bay and Mayer (2006), we propose decomposition frameworks for handling CVaR objectives and constraints in two-stage stochastic models. For the solution of the decomposed problems we propose special Level-type methods.

In this paper we address the problem of coalition formation in hedonic context. Our modelling tries to be as realistic as possible. In previous models, once an agent joins a coalition it would not be able to leave the coalition and join the new one; in this research we made it possible to leave a coalition but put some restrictions to control the behavior of agents. Leaving or staying of an age...

This research examined whether youth’s forecasted risk taking is best predicted by a compensatory (namely, subjective expected utility) or non-compensatory (e.g., single-factor) model. Ninety youth assessed the importance of perceived benefits, importance of perceived drawbacks, subjective probability of benefits, and subjective probability of drawbacks for 16 risky behaviors clustered evenly i...

Kuhn’s Theorem shows that extensive games with perfect recall can equivalently be analyzed using mixed or behavioral strategies, as long as players are expected utility maximizers. This note constructs an example that illustrates the limits of Kuhn’s Theorem in an environment with ambiguity averse players who use a maxmin decision rule and full Bayesian updating.

Convective instabilities responsible for misoriented grains (freckle defects) in directionally solidified turbine airfoils are produced by variations in liquid–metal density with composition and temperature across the solidification zone. Here, fundamental properties of molten Ni-based alloys, required for modeling these instabilities, are calculated using ab initio molecular dynamics simulatio...

The subset sum problem (SSP) can be briefly stated as: given a target integer E and a set A containing n positive integer aj , find a subset of A summing to E. The density d of an SSP instance is defined by the ratio of n to m, where m is the logarithm of the largest integer within A. Based on the structural and statistical properties of subset sums, we present an improved enumeration scheme fo...

In this paper, the nonlinear transient vibration of a cylindrical shallow panel under lateral white noise excitation is studied. The panel is in contact with a non aging viscoelastic medium. Since the external load is a time varying random wide band process, deterministic and conventional approaches cannot be used. Instead, the evolution of the probability density function of the response is in...